myanmar garment sub-sector value chain analysis garment sub...myanmar garment sub-sector value chain...

Myanmar Garment Sub-Sector

Value Chain Analysis

prepared for prepared by

This report was developed by Emerging Markets Consulting (EMC), in collaboration

with Synergia for the International Labour Organization (ILO).

The findings described in this report do not reflect the views and opinions of the ILO.

Myanmar Garment Sub-Sector

Value Chain Analysis

May 2015

PREPARED FOR PREPARED BY

Myanmar Garment Sub-Sector Value Chain Analysis

ContentsExecutive Summary .................................................................................................................... 1

Project Background ....................................................................................................................2Methodology 3

The Myanmar Garment Sector ................................................................................................5

Garment Input Sub Sectors .................................................................................................... 11Sub-Sector Selection Workshop 11

SWOT Analysis 14

Packaging Materials 15

Cardboard Boxes 15

Polybags 17

Hangers 18

Training Services ........................................................................................................................19Technical Trainings 19

Available Providers 20

Managerial Skills Trainings 22

Recommendations .................................................................................................................. 23Near Term Interventions 24

Deepen Sector Linkages Between Value Chain Actors 24

Information Sharing 27

Year-Long Interventions 29

Skills Development 29

Policy Related Recommendations 32

Advocacy and Policy Guidance 32

Endnotes .....................................................................................................................................30

Annex ............................................................................................................................................31Review of National Strategy Objectives 31

Abbreviations 38

Stakeholders Contacted 39

Acknowledgements 42


List of Figures

1 Research Focus 2

2 M4P Framework 3

3 Primary Project Components 4

4 Myanmar Garment Sector Evolution Phases 5

5 Myanmar Garment Exports , USD Millions 6

6 Regional Comparison of Garment Sectors 7

7 Average Factory Workforce Size, 8

Number of employees (14 factories)

8 Myanmar Garment Sector SWOT Analysis 9

9 Input Selection Process 11

10 Services Selection Process 12

11 Input Supplies Screening Process 13

12 Sub-Sectors SWOT Analysis 14

13 Packaging Sector Simplified Supply Chain 15

14 Main Types of Cardboard 16

15 Polybag Production Process 17

16 Packaging Simplified Supply Chain 17

17 Simplified Hanger Supply Chain 18

18 Summary of Technical Training Providers 21

19 Example of a Business Directory 28

20 Ranking of the potential policy interventions 32


Executive Summary

1

Executive Summary With the lifting of the European and American export sanctions

on Myanmar, the garment sector in the country is now experi-

encing new levels of growth. The Myanmar Garment Manufac-

turers Association (MGMA) reports that new garment factories

are opened every week, and the number of workers involved in

the industry is forecasted to grow from the 260,000 currently

employed to 600,0001 in the next three years.

While growing, the sector is still in its early stages and most

of the manufacturers active in the country are operating on

a Cut, Make and Package (CMP) production system, whereby

producers are only responsible for the pure production of the

garments, and not involved in the design and/or input sourcing

processes.

International Brands

International brands are interested in the country, which fea-

tures as its strength a large cheap workforce that is however

largely untrained and unskilled. While other countries in the

region are more advanced than Myanmar in the production of

garments (i.e. Bangladesh, Cambodia, Vietnam, China), there

are opportunities for Myanmar to gain more of the regional

production share, as some of these countries are increasingly

seen as “controversial” (Bangladesh) or increasingly expensive

(Vietnam, Cambodia, China).

Most of the inputs necessary to the garment sector have to

be imported from abroad, the country is not able to produce

inputs like zippers, buttons, fabrics and others at quality stan-

dards of international brands. The study found that only a few

inputs are produced and sourced locally, like packaging ma-

terials (such as cardboard boxes and polybags) and hangers.

While produced locally, the raw materials necessary to produce

these inputs are not available in Myanmar at the level of quality

necessary, and local manufacturers and input producers need

to import materials (paper and plastic granulate).

Recommendations

After carrying out an overview of the garment sector and two

of its input supplies (packaging materials and hangers), EMC

designed intervention divided into three groups: near term in-

terventions, year-long interventions and policy interventions.

Near term interventions include improving the linkages within

the sector or to increase the amount of information available

to all stakeholders. Strengthening the sector linkages could

happen through workshops between international buyers

and local manufacturers, through mini trade fairs to put local

garment manufacturers in connection with local and interna-

tional input suppliers and finally by including local and interna-

tional banks within the sector.

Year-long interventions would see the ILO getting involved

in improving the capabilities of one more training providers

in the country. The recommendation would be not to enter

the space of technical trainings (sewing, quality control, etc.),

already being offered by others, and whose uptake has not

been satisfactory, but rather to focus on management train-

ings that might aid the industry to move from the current CMP

production system towards the higher value added FOB one.

Finally, policy recommendations align with three objectives

that are already part of the Myanmar Ministry of Commerce’s

(MOC) national garment and textile export strategy. The ILO

is aligned with the ministry’s efforts to create safer working

conditions for garment workers (and expanding this objec-

tive to include other key labour rights). Second, the ILO might

choose to focus its energies on aiding the MGMA to develop a

set of production standards, or to aid the MIC to create and in-

ter-ministerial steering committee to jointly design the future

national strategic policies for the garment sector.

International brands are interested in the country,

which features as its strength a large cheap workforce that is however largely

untrained and unskilled.

1 National Export Strategy, Myanmar Ministry of Commerce and International Trade Center, 2014


Project Background

2

Project BackgroundThe International Labour Organization (ILO), building on

the removal of restrictions on ILO cooperation with the

Government of Myanmar in 2012, is implementing the Decent

Work Framework, to support the development of Myanmar’s

garment sector through a range of different strategies and

interventions. The garment sector has the potential for large

scale employment, as well as to reach the largely female

workforce employed, although now is a crucial time for

development partners to work to mitigate the considerable

social and environmental risks to the growth of this industry.

One particular intervention is the promotion of responsible

business practices that create economic and employment

growth. With funding from DANIDA, the ILO aims to contribute

to decent work opportunities for women and men in garment

sector value chains, while ensuring the main actors targeted

within these chains work towards following responsible

business practices.

In particular, the ILO is interested in helping the Myanmar

garment sector to capture a larger part of the global value

chain. Garment pricing in Myanmar is currently on a CMP basis

(cut, make, and pack), whereby manufacturers in Myanmar

negotiate fees only for the assembly labour performed on

garments, not for the full value of the garments. It is therefore

a sector priority for Myanmar’s garment sector input value

chains to be strengthened (preliminary input value chains of

interest would be fabrics, weaving, and dyeing operations, as

well as trims, zippers, buttons, Kimball tags, pattern papers,

vacuum tables, and DKT sheets). If domestic capacity in these

areas can be strengthened, the Myanmar garment sector

could move to an FOB basis for pricing (whereby international

buyers pay Myanmar garment factories for the full value of

the completed clothes as they are loaded “on board” shipping

vehicles), putting Myanmar in a stronger negotiating position to

capture more margin in country, and subsequently increasing

opportunities for factories to provide decent employment to

workers.

If the Myanmar garment sector can move from a

CMP to an FOB production system, the country could

capture higher margins

Research FocusFIGURE 1

Input Suppliers

Producers

FINANCIAL PROVIDERS CROSS-CUTTING PROVIDERS SECTOR-SPECIFIC PROVIDERS

Buyers

Wholesalers

Exporters

National Retailers

Global Retailers

Final Customers


Project Background

3

Methodology

The aim of this study was to approach the sector by following

the “Making Markets Work 4 the Poor” (M4P) approach. The

aim was to consider all the relevant market components into

the focus. As Figure 2 depicts, the M4P approach recommends

focusing on three areas to understand a market:

Core Function Value Chain

The study tried to investigate and understand the business op-

erations of all stakeholders involved in the chain (international

brands, garment manufacturers and selected input suppliers),

as well as the linkages between them.

Supporting Functions

Interviews and market scoping included an overview of the

enabling environment supporting the garment sector, includ-

ing service providers, available infrastructure and information

channels.

Rules

The study additionally focused on understanding the sur-

rounding legal and regulatory environment surrounding the

garment sector.

Market EnvironmentFIGURE 2


Project Background

4

The project was designed to carry out an assessment in the

closest possible participation with the sector’s private and de-

velopment stakeholders and for this reason its activities were

broken down into multiple subsequent phases.

After carrying out a desk review of the relevant secondary lit-

erature available on the garment sector in Myanmar, the team

carried out in-depth interviews with garment manufacturers in

both Yangon and Mandalay, to investigate their production ca-

pacities, workforce abilities, the general business environment,

the origin of their input supplies, as well as their perceived

needs and constraints in growing their businesses.

The results of this initial analysis were presented to key sector

stakeholders in a participatory workshop. After being pre-

sented with the initial value chain findings, participants were

asked to collaboratively engage in a participatory discussion

and to select a sub sector input supply and services which the

research should focus. The selection was guided by two sets

of selection questions, involving the relevance of the sectors

to the growth of garment industry and the potential for those

inputs to be supplied within the market in the short to medium

term. Through this exercise, two input supplies (hangers and

packaging materials) and one service area (trainings) were

identified for deeper sub-sector analysis.

Interviews were carried out in these three sub-sectors and the

findings were presented in a second participatory workshop, to

obtain feedback on the findings of the research. The research

began by participating in a two day workshop organized by the

MGMA and Coats that hosted representatives of the garment

sector. Following, the research team contacted sixty-three

firms, and visited fourteen garment factories, nine packaging

producers and one hanger producer. Additionally, the team

met with stakeholders including the Myanmar Garment Man-

ufacturers Association, the Myanmar Pulp and Paper Associa-

tion, SMART and Pyoe Pin.

In the second workshop, EMC presented the preliminary

findings from the research process and asked participants to

confirm and elaborate on the initial analysis. Participants were

then asked to collaboratively engage in a participatory dis-

cussion to identify potential interventions that they suggested

would be valuable to promote the growth of the garment in-

dustry and selected sub-sectors. Feedback from this workshop

was combined with previous analysis in order to develop this

final report.

The report starts by giving an overview of the Myanmar garment

sector and of primary and secondary findings that were col-

lected during the research process. The following sections give

an overview of the selected inputs supplies: Packaging Materi-

als, Hangers and Textiles. Finally, the last section presents a list

of recommendations designed for the ILO to consider, broken

down into Near Term interventions, Year-Long Interventions

and Policy recommendations.

Primary Project ComponentsFIGURE 3

1

Secondary Research

4

Sub-sector Value Chains

2

Garment Sector High Level Value Chain Analysis

5

Value ChainInterventions Workshop

3

Sub-sector Selection Workshop

6

Report Writing


The Myanmar Garment Sector

5

The Myanmar Garment Sector The garment sector has proven itself to be a driver of eco-

nomic and occupational growth in many Asian economies.

Myanmar started on a similar trajectory in the early 1990s, but

then experienced stagnation during the years of the interna-

tional trade sanctions on the country. Toshihiro Kudo, in his

assessment of the Myanmar garment sector, breaks down its

evolution into five phases: a Pioneer Period (1990 to 1993), a

Steady Growth Period (1994 to 1997), a High Growth Period

(1998 to 2001), a Stagnation Period (2001 to 2005), and a Re-

covery Period (2006 – 2011). The US and European economic

sanctions imposed on Myanmar in the early 2000’s drastical-

ly impacted the sector. Export decreased until 2005, when a

shift occurred in their direction: Eastern countries like Japan

and Korea took the dominant place previously held by the EU

and the US, as illustrated in Figure 4. The overall total value of

exports managed to grow from 2005, even if the growth levels

have yet not reached the pre-sanctions period. With Myanmar

on a process of liberalization reforms, the sector started expe-

riencing a new growth in 2011. As western international brands

turn their attention to the country once more, a number of

local and international entrepreneurs are seeing investment in

the sector as an opportunity.

Figure 4 shows how the structure of the sector has evolved

responding to both internal political changes and to the inter-

national responses to it.

Myanmar Garment Sector Evolution Phases2FIGURE 4

1990 - 1993

Pioneer Period

1994 - 1997

Steady Growth

1998 - 2001

High Growth Period

2002 - 2005

Stagnation Period

2006 - 2011

Recovery Period

Major Player

JVs between state-owned and military-related enterprises and Korean and Hong Kong firms.

JVs between state-owned and military-related and Korean and Hong Kong firms; 100% foreign owned firms

Domestic private firms; “Spin out” Korean and Hong Kong Businesses; Taiwanese buyers

Foreign affiliated firms; Widening disparity among firms

Foreign affiliated firms

Policy Environment

Virtual Prohibition of 100% foreign ownership; Monopoly of quotas by state-owned and military-related enterprises.

Monopoly of quotas by state-owned and military-related enterprises. Lifting of prohibition on 100% foreign ownership

Allocation of quotas to private firms; Expansion and misuse of CMP; Privileges of MIC approved firms; Import of equipment by deferred payment.

Obligation to register with MIC; Tightening of regulation and taxation

Obligation to register with MIC; Tightening of regulation and taxation

Global Economic

Environment

MFA regime, no sanctions by US and EU

MFA regime, no sanctions by US and EU

MFA regime; Brisk markets in US and EU; Worsening trade relations with US and EU; ILO warning for sanctions

Slow down of US market; Abolition of MFA regime (Jan 2005). US economic sanctions (from Jul 2003). Disappearance of major EU buyers

No access to US market. China plus orders from Japan and Korea

Export by Type of Firm

State-owned and military-related JVs 95%100% foreign owned 0% Domestic 5% private

State-owned and military-related JVs 90% 100% foreign owned 5% Domestic 5% private




2 Source: Toshihiro Kudo, How has the Myanmar Garment Industry Evolved, 2011



6

Myanmar garments total value of production has only recently

grown back to its values in 2003. In 2000, 55% of the exports

were shipped to the United States and 38% were shipped to

Europe, while the remaining 7% was destined to other coun-

tries. In 2012, 16% was sent the EU, 50% to Japan, 33% to Korea

and 1% to others.

Garment factories worldwide can be summarized into four

main categories4, relating to their business models:

1. Cut, Make and Package (CMP)

This system is usually the entry stage for a manufacturer in the

garment value chain. Inputs are entirely or almost entirely sup-

plied by the client, who gives its product specifications to the

manufacturer, who focuses on production alone. Countries

whose garment factories operate following this production

system include Cambodia, Sub-Saharan Africa, the Caribbean,

Vietnam and Myanmar.

2. Original Equipment Manufacturer (OEM)

This system represents the first stage of functional upgrad-

ing toward value added production. The supplier is given

clear specifications on raw materials to be used and design

to be followed, but enjoys a wider freedom in manufacturing

related functions, such as sourcing inputs, product finishing,

and packaging to the retail outlet. On occasion, the supplier

might be entitled to take on outbound distribution, Freight on

Board (FOB). Countries whose garment factories operate fol-

lowing this production system include Bangladesh, Indonesia,

Sri Lanka and Mexico.

3. Original Design Manufacturer (ODM)

In this production system, the supplier acts as a “full package

garment supplier”, which includes pre-production processes

(design in collaboration with the client) and the overall pro-

duction process (input purchase, cutting, sewing, trimming,

packaging and distribution). Countries whose garment facto-

ries operate following this production system include Turkey,

EU, India and China.

4. Original Brand Manufacturing (OBM)

In this production system, the supplier has post-production

responsibilities and can develop its own brand, either in col-

laboration with the original client (for a specific target market)

or independently.

Myanmar Garment Exports3, USD MillionsFIGURE 5

1997

1998

1999

2000

2001

2002

EU Sanctions

US Sanctions

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

$200$0$400

$600$800

EU US OTHERS

JAPAN SOUTH KOREA

3 Source: Comtrade Database4 Source: Gereffi, Gary, Frederick, Stacey, The Global Apparel Value Chain, 20105 Source: Project Support for the Myanmar Garment Sector Development Programme, Pyoe Pin, 20146 Generalised Scheme of Preferences (GSP), namely the Everything but Arms (EBA) scheme. The Everything But Arms scheme gives the 50 Least Developed Countries duty free access to the EU for export of all products, except arms and ammunition.7 Source: Kunzli, Raps, Bals, Wichate, Discovering Myanmar as Manufacturing Country, 2014



7

Myanmar garment manufacturers are currently operating

under a CMP production system within the international value

chains, although in some instances garment producers are op-

erating under an OBM system for the local market. The main

reasons that attract international brands to the country as a

production hub are its cheap cost of labour, its status as a duty

free exporter country under the EU Generalized Scheme of

Preference (GSP)6, and its potential to become more appealing

than its neighboring countries. Bangladesh has recently lost

part of its attractiveness to international brands due to worker

safety issues, while countries like China and Vietnam have

been showing wage and production cost increases that are

progressively making them less appealing. The CMP model,

which is usually the first step into the development of a na-

tional garment sector, is characterized by buyers whose main

decision driver is price. This constitutes a “Buyer Driven Value

Chain”7, where international brands work with local suppliers

either directly, or through location/regional agents managing

their orders.

Interviews with garment producers in Myanmar have indicated

that even when they are dealing directly with an international

brand, they often still have to resort to a regional agent with

offices outside of Myanmar, to be able to manage interna-

tional banking transactions. The current banking situation in

the country poses large problems and delays to manufactur-

ers in receiving their payments, especially when dealing with

western brands whose countries still maintain strict banking

sanctions on Myanmar. Having to rely on this external agent

for their payments, not only involves delays in receiving pay-

ments, but also a substantial handling fees that can rise up to

10% of the total amount transferred.

Regional Comparison of Garment Sectors5

Metric Myanmar Bangladesh Cambodia China

Export Values $500 Million $19.9 Billion $4.445 Million $153.219 Billion

Capacity: Number of factories

210 3200 447 100,000

Assortment of Product Availability

High tech

sportswear, formal

suits and shirts

Knitwear, Denim,

Kidswear

Shirts,

footwear

All types

of products

Export Locations

Global, Japan 45.5%

and Korea 30.3%

Global Global Global

Worker Availability

Good availability Wokers available

in abundance

with basic skill

Limited pool of

workers due to

population size

Difficult to attract

workers to the

garment industry

Labour rates – Minimum Wage

No set wage.

Current estimate

of $60/month

including overtime

$68 (5300Tk)

basic rate

$80 1200-1400RMB

($195-228 USD)

basic

Shipping times to UK

30 days

(+/- 10 days)

30-35 days 28 days 35 days

Compliance Risk

Extremely High –

implementation on

labour law is weak

and factories are

not familiar with

standards

High –

factories are

aware of codes of

conducts, but are

not implemented.

Medium to High Medium to High

Quality Capacity

There are low quantities of skilled middle management

Abundance of middle managers, but skill is relatively low

Most of the skilled management is foreign

High skill level, good availability

FIGURE 6



8

The growth in the garment sector is largely spurred by Foreign

Direct Investment (FDI), either in the form of Wholly Foreign

Owned Enterprises (WFOEs) or Joint Ventures. The direc-

tor-general of the Directorate of Investment and Company

Administration (DICA) estimates that most of the FDI incom-

ing into Myanmar is directed at the garment sector, and that it

mostly originates from East Asian countries like Japan, Korea

and China.

According to MGMA estimates the sector employs ~260,000

workers, or 1% of the country’s working population. Most

of this estimated8 workforce is unskilled youth, especially

women, migrating from rural locations to Yangon where 95%

of the garment sector is located. The estimates8 foresee the

this workforce to grow up to 600,000 over the next three

years, and start attracting more skilled migrating workforce

(previously emigrated to countries like Thailand) back into the

country.

Garments are currently the fourth most important export in

Myanmar. The national export strategy developed by the min-

istry of commerce plans to build opportunity around the mo-

mentum enjoyed by the sector and work to increase compet-

itiveness by:

• Supporting strategies that will help local manufacturers

to evolve from CMP producers to FOB producers, able

to capture a higher value form their products.

• Increase the quality of production by establishing a set

of country quality standards to be respected, in compli-

ance with international ones.

• Develop the lacking export infrastructure (deep sea

ports) as well as production locations (sector-dedicated

economic zones).

• Developing the regulatory and legal framework to be

able to protect workers’ and producers’ rights.

Looking at the market through the lenses of Porter’s five forces,

the Myanmar garment sector is in a growing, but is in a weak

power position. Bargaining power of buyers is high, as inter-

national brands have multiple regional options (high threat of

substitutes) to choose from, and the main reason they would

choose Myanmar as a production hub is the low cost of labour

and when other production countries are too busy, and con-

sequentially, the bargaining power of suppliers is low. Given

the fact that local manufacturers operate on a CMP production

system, which does not require significant capital investment

to launch operations, threat of new entrants in the market is

high, both from domestic and international companies (high

levels of rivalry).

While the Myanmar Garment Manufacturers Association

reports approximately 300 exporting garment factories in

Myanmar, the number of actual active export oriented produc-

ers is estimated to be closer to ~2109. A study carried out by

Impactt and Pyoe Pin in 2013 divides locally operating factories

into three main categories – Leaders, Hopefuls, and Locally

Owned. “Leaders” are larger organizations, usually over 1,000

workers, either 100% foreign owned or operating through

joint ventures (JV); these factories are considered to be local

industry leaders in terms of machinery, production quality,

management and labour conditions. Estimated to be small in

numbers (~20), they have the capacity to operate on an FOB.

The second identified group, called “Hopefuls” is still small in

numbers (~30) and is owned either locally or through JVs; these

producers are characterized by a workforce between 500 and

1,000 workers. While they show limited quality and innovation

in their machinery capital, lower labour conditions and man-

agement skills, they show growth potential on all fronts. The

third and largest group (~160), and called the “Locally Owned”

is characterized by a smaller workforce, lower than 500, local

ownership, inadequate machinery and low management skills.

2011 2012 2013

500

550

600

650

700

WORKERS SUPERVISORS MANAGERS

5

29

573

4

31

613

7

33

630

Average Factory Workforce Size, Number of employees (14 factories)

FIGURE 7

8 National Export Strategy, Myanmar Ministry of Commerce and International Trade Center, 20149 Source: Toshihiro Kudo, How has the Myanmar Garment Industry Evolved, 201110 Note: percentages rounded up to the highest number11 National Export Strategy, Myanmar Ministry of Commerce and International Trade Center, 2014



9

Labor• Lower wages than many regional competitors• Large “exposed” English (unskilled trainable) available workforce• Currently low numbers of disruptions (strikes)

Free trade agreement with the EU

Low tax regimen

Skill level for mid- to high-skill tasks

Low production quality, quality controls, technicians due to lack of current experience

Infrastructure: Transport, Electricity, and Communications

Limited access to: raw materials and inputs in country, land ownership, legal protection, and finance

Banking system: Payment systems, LCCs

Tax system incentivizing CMP over FOB

Buyers interest• Asian buyers are a source of revenues and training• European and American buyers can be a source of reform in the

sector

Neighbouring countries• Vietnam, Cambodia and China are more expensive• Bangladesh is seen as risky by brands

Potential for specialization in woven items

Wage competition over workers with foreign investors in the sector and other industries

Neighbouring countries• Higher quality production, experience and labour skills, higher

efficiency and productivity• Competition from upcoming economies in Africa with FDI

attractiveness incentives

Buyers are still testing concept; no consistent orders

During the course of the study, fifty-two garment sector

stakeholders were interviewed, and invited to the participato-

ry workshops organized by the team. This study carried out

in-depth interviews with fourteen local garment producers.

These included both smaller locally owned factories and large

internationally owned ones. The largest garment produc-

er interviewed was 100% foreign owned (Japan), and had a

workforce of over 1,000 employees. Across the sample, in-

terviews have indicated growth in the number of workers last

three years, from an average of ~606 workers per factory in

2011 to an average of ~670 workers per factory in 2013. The

workforce inside a garment factory is on average distributed

as follows: ~54% are operators at the Sewing stations, ~11%

work at the Cutting stations, ~11% at Finishing stations, ~7% is

in charge of Quality Control, while about ~18%10 of the work-

force are support activities such as helpers, guards, cleaning,

and cooking.

The average basic wage paid to the staff, excluding bonuses,

overtime and other bonuses, can vary from factory to factory,

and interviews indicated that the minimum average monthly

salary is approximately USD 72 for entry positions (helpers),

while average monthly salary for operators (including finish-

ing, cutting and QC) is ~USD 116, while supervisors receive on

average ~USD 260 and managers ~USD 443. It is worth notic-

ing that while the research collected these data, studies carried

out by the Ministry of Commerce identified the average salary

of garment sector workers to be ~USD 9011.

Interviewees were asked to share with the team their per-

ception of the Myanmar garment sector, and they indicated

that a large workforce is indeed strength of the sector. A large

number of workers are available for wages that are very low

compared to the ones in competing countries. On the nega-

tive side, this large workforce is often unskilled. This has a sub-

stantial effect on the level of productivity and quality that local

manufacturers can produce. Garment manufacturers have

indicated the need to train the workforce, but not the neces-

sary willingness to pay for it. Interviews indicated that garment

producers, while recognizing the need for better trained staff,

seemed concerned with investing in trainings; some indicated

that skill development was a responsibilities of organizations

like the MGMA, who should provide trainings free of charge,

while others indicated being satisfied with the trainings provid-

ed to them by their international buyers, or that they are not in

sending staff to be trained at all, as workforce turnover is too

high. In fact, manufacturers have indicated reluctance in train-

ing their staff due to the fact that workers will easily move from

one garment manufacturer to another without any notice, for

a salary increase of ~USD 10.

Myanmar Garment Sector SWOT AnalysisFIGURE 8

Strengths

Opportunities Threats

Weaknesses



10

One indicator of the strength of the industry is the reported

growth of new factories opening in Myanmar, which was de-

scribed anecdotally by the MGMA as four to five factories per

week12. This business growth, if accurate, should indicate an

overall strong opportunity for the sector.

Other strengths were indicated in the free trade agreement

with the EU, as well as the low tax regimen producers are

subject to.

Respondents indicated that one of the major weaknesses of

the sector, and a key constraint to its growth toward a FOB

production system, lies in the lack of locally available input

supply. The local tax system, while supporting CMP oriented

producers with tax free imports and exports for good to be ex-

ported, does not provide the same tax incentives to FOB pro-

ducers, limiting the incentives to manufacturers to make the

move towards FOB, as they would not be able to source their

inputs locally.While producing on a CMP basis, some respon-

dents indicated that international buyers would be willing to

allow them more freedom in sourcing their inputs, if the quality

of local production allowed for it. Interviews indicated that

almost all inputs – buttons and trims, chemicals, machinery

– are entirely imported, as these inputs are unavailable in the

country. Thread is either imported raw from China and Korea

then dyed in Myanmar, or sourced or entirely sourced from

abroad, the main issue being the low level of quality controls.

Garment manufacturers indicated that they cannot rely on

the fabrics produced in Myanmar to produce for international

brands, as the quality is not high enough, and the reliability,

timing and scale of local production is not up to their needs.

The sector is also suffering from infrastructural limitations.

Producers in Yangon experience on average of three to

four electricity outages a day, leading to loss of production

time. In most cases, the factory will own a diesel generator

which allows them to continue, but it usually takes at least

ten minutes to get the machinery working again, leading to

minimum average loss of forty working minutes per day, to

a maximum average loss of two hours for factories lacking a

generator. In addition, running the generator produces signif-

icant smoke, which makes the work environment less safe for

the workforce. For cost comparison, electricity costs ~USD

0.04 to 0.09 cents / kWh when receiving electricity from the

grid, while the cost can go up to ~USD 0.3 to 0.4 cents / kWh

when using an average diesel generator13.

The banking system and access to credit have been identified

as one of the major constraints to the growth of the garment

sector. Manufacturers can difficulty access lines of credit or

financing due to banks’ requirements of large collateral, and

interest rates can be as high as 12%, even if the official inter-

est rate stated by the Myanmar central bank is 10%. Another

large problem experienced by manufacturers revolves around

Letters of Credit (LCs). LCs are crucial to the sector, as it allows

manufacturers to shift part of the risk connected to trading

with their partners on the issuing banks. State owned banks

like MFTB and MICB do offer LCs to imports and exporters,

but these are not internationally recognized. As a result, man-

ufacturers either have to own an office in Singapore to access

LCs from foreign banks or they need to obtain them through

foreign agents, and both options entail large additional costs.

Respondents indicated that a major weakness of the

sector, and a key constraint to its growth towards FOB,

lies in the lack of locally available input supply.

12 EMC interview with Myanmar Garment Manufacturers Association13 Source: Harvard Kennedy School, ASH Center, Electricity Demand and Supply in Myanmar, 2012


Garment Input Sub Sectors

11

Garment Input Sub SectorsAs stated before, one of the constraints to growth to the

Myanmar garment sector is a lack of locally available input

supplies. While a few embroidery facilities, label and pattern

paper suppliers are available in Myanmar, most manufactur-

ers obtain pre-embroiled fabrics from their buyers. Dyeing,

washing and printing facilities are available in the country, but

garment manufacturers are not up to their needs in terms of

standards and certifications. Garment manufacturers indicat-

ed that they do source part of their packaging materials and

hangers locally.

The heat map below shows the full list of inputs considered

during the initial phase of the research. Seven characteristics

were considered for each sub-sector: current production in

country, availability of raw materials in country, level of tech-

nology necessary, its importance to the garment sector, the

feasibility of interventions within five years’ time, the levels of

training needed and the level of financing needed. The color

coding represents the initial estimation of how each charac-

teristic is either attractive , neutral or not attractive to

the industry.

Inputs

Thread

Fabric

Buttons

Embroidery

Chemicals

Dyeing

Washing

Machinery

Pattern Paper

Printing

Labels

Zippers

Hangers

Weaving

Packaging Materials

Input Selection ProcessFIGURE 9

Curre

ntly

produ

ced/

p

roce

ssed

in c

ountry

Raw m

ater

ials a

vaila

ble

in

coun

try

Leve

l of t

echn

ology

n

eede

d

Impo

rtanc

e to

gar

men

t

se

ctor d

evelopm

ent

Inte

rven

tions

feas

ible

w

ithin

5 ye

ars

Leve

l of t

rain

ing

n

eede

d

Leve

l of fi

nanc

ing

n

eede

d



12

Services Considered

Sub-Sector Selection Workshop

These initial findings were presented in a half-day workshop

in Yangon, where participants from the garment sector were

asked to share their views of the garment sector – growth,

opportunities and key constraints. During the participatory

section, stakeholders were asked to help the research team to

identify garment sector inputs and service areas that the re-

search team should further research into. The selection was

facilitated by the research team in cooperation with the ILO

team. Participants were presented with initial findings on fifteen

input supplies; as depicted in Figure 10, the first screening was

based on whether production or processing was available in

Myanmar and what private sector interviews had identified as

more needed. The second screening was whether it was po-

tentially feasible and interesting to invest in these sub sectors in

the next five years. This initial screening was carried out by the

research team and participants indicated they agreed with the

selection. Finally, participants were presented with a shorter

list of inputs to discuss: Packaging Materials, Hangers, Woven

Fabric, Dyeing, Embroidery, Labels, Printing and Knitted Fabric.

Participants, divided into groups, were asked to screen the list

of eight inputs and to shortlist up to three, based on four di-

mensions: highest need for the garment sector, inputs current-

ly available and reliable in country, feasibility of improving the

sub-sector within five years, and its needs. This process led to

the selection of Packaging Materials (including both cardboard

boxes and polybags) and hangers. The same groups were

asked to discuss services necessary to the garment industry

and to select one of them, also on four dimensions: need of

the garment sector, feasibility of interventions within five years,

sub-sector needs and the potential to create better jobs. The

result of this process was the selection of training providers.

Final Selection

Training

Auditing

Quality Control

Freight Forwarding

Laboratory

Training

Advisory

Services Selection ProcessFIGURE 10

Key Decision Criteria

Which of these services does the garment sector need the most?

Is it possible to substantially improve and expand local production in the next five years?

What would it take to improve the services?

Creation of better jobs



13

Inputs Considered

Inputs Considered

Final Input SelectionFinal Decision Criteria

Final Selection

Which of these inputs does the garment sector need the most?

What is the current quality and reliability of production?

Is it feasible to substantially improve and expand local production in the next five years?

What would it take to improve the sector (machinery, skill sets, training)?

Hangers

Packaging Materials

Buttons Woven Fabric Thread Chemicals Dyeing Weaving

Hangers EmbroideryPackaging Materials Knitted Fabric

ZippersLabels PrintingMachinery Pattern Paper Washing

Input Supplies Screening ProcessFIGURE 11

Packaging Materials Labels

Packaging Materials Labels

Hangers Knitted Fabric

Woven Fabric Thread Dyeing

Woven Fabric Dyeing

Hangers Knitted Fabric Weaving

Embroidery Washing

Embroidery Washing

1st Screening

Is production of processing of the inputs already available within the country?

What would the private sector prioritize, and via which actions?

2nd Screening

Is it possible and attractive to intervene in this sub-sector and see the results in the next five years?

Which inputs require technical assistance to improve efficiency, quality and productivity?



14

Labour• Lower wages than many regional competitors• Currently low numbers of disruptions (strikes)

Low tax regimen

Skill Level for mid-high skill tasks

Low production quality, quality control, technicians due to lack of current experience

Access to: raw materials and inputs in country, land ownership, legal protection, and finance

Infrastructure (Transport, Electricity, and communications)

Financing

International Interest

Lower cost of production in comparison with neighbouring countries

• Vietnam, Cambodia and China are more expensive

Myanmar economic growth

Wage competition over workers

Neighbouring countries• Higher quality production, experience and labour skills, higher

efficiency and productivity

Sub-Sectors SWOT AnalysisFIGURE 12

Strengths

Opportunities Threats

Weaknesses

SWOT Analysis

While the following sections dive deeper into Packaging Ma-

terials and Hangers, it is worthwhile mentioning that many

of the characteristics of the business environment previously

identified for the garment sector apply also to input supply sub

sectors.

The country economic growth is transforming Myanmar in an

appealing business destination for foreign investors in differ-

ent sectors, and even sectors in their “infancy” stages like are

starting to attract foreign investors willing to take advantage

of their strengths and opportunities. The low salary levels of a

large available workforce make Myanmar an attractive business

destination, especially when compared to regional neighbor-

ing countries which are becoming more expensive production

hubs, such as Vietnam and China.

The weaknesses and threats of the garment sectors apply as

well. While neighboring countries are more expensive com-

pared to Myanmar, they still offer higher skills sets and higher

quality production. The workforce is still untrained, and em-

ployees’ turnover is an issue, as workers are known to switch

to new jobs for limited salary increases. Access to raw ma-

terials, further discussed below is a large constraint on both

packaging materials and hanger production, as it affects costs

and lead times. The business enabling environment also poses

a challenges, as electricity provision is limited and access to

capital hard for small and medium enterprises.



15

Packaging Materials

Production of packaging equipment is happening at small

scale in the country. More complicated boxes and polybags

are imported from abroad, while a few local producers offer

lower quality and less resistant packaging materials, mostly

used in the domestic market. There are sixty-three companies

officially registered as suppliers of packaging materials14 to the

garment industry in the Myanmar textile directory, but when

contacted on the phone, few of them were carrying out their

own production, and instead they were importers and retailers.

From conversations with local producers, EMC estimates that

only thirty of these companies actually cater to the garment

sector.

The garment sector needs two main packaging items: card-

boards and polybags, and if the manufacturer is export ori-

ented, both need to meet the strict specifications of the in-

ternational clients. International brands can either indicate

“designated suppliers”. Most production of packaging materi-

als in Myanmar do not meet international standards, and thus

need to import these input supplies.

Cardboard BoxesOne of the key inputs for cardboard boxes is paper. The

Myanmar Pulp and Paper Industry Association states that six of

its members are paper mills15 (all government owned), while its

remaining eighteen members are locally owned paper manu-

facturers. On top of these locally owned factories, the research

identified one Korean garment manufacturing company that

vertically integrated to produce cardboard boxes for its own

three garment factories, and is currently expanding to sell pro-

duction to the rest of the garment sector, as well as a large

Japanese16 paper manufacturers who is currently building a

facility in Myanmar to produce packaging materials and plans

to be able to commence commercial operations in the second

half of 2015. The biggest interviewed cardboard producer in

the country, Myanmar Yes Co. Ltd., had a total production ca-

pacity of up to 400 tons/month, and employed 250 workers.

The smallest identified was able to produce up to 60 tons/

month and employed 100 workers. The research team iden-

tified large differences in the factory and working conditions

among cardboard producers, from more modern producers

with proper working standards to smaller factories character-

ized by sub-standard conditions, and further research in this

area might be carried out with the support of a labour condi-

tions expert. Supply of locally produced cardboard boxes does

not seem to meet the demand, as a large number of packaging

suppliers are not producers but importers. The current market

demand for cardboard boxes in Myanmar is estimated to be

>3,000 tons / month, of which 70% is produced locally by

private factories, while the remaining 30% is imported or pro-

duced by state owned companies17. While all garment manu-

facturers interviewed indicated that they purchase cardboard

boxes locally, not all of it is locally produced.

One key finding from conversations with cardboard producers

was that they did not seem to perceive the garment sector as

a growing business opportunity, highlighting a lack of linkage

and information sharing between the two sectors. Instead,

packaging producers seemed focused on the packaged food

and seafood products industry, where they have more con-

tracts. While interviewed producers were not willing to share

details of their profit margins and different sales prices applied

to their different clients, the main indicated reasons were the

different box quality requirements across sectors, and the fact

that in the last five to ten years cardboard producers have de-

veloped better business relations with sectors other than the

garment one.

Packaging Sector Simplified Supply Chain: BoxesFIGURE 13

Packaging Materials Importers

Local PaperMills

ExportMarket

Myanmar Packaging Manufacturers

Garment Manufacturers

Recycled Paper

Suppliers

DomesticMarket

14 Source: Myanmar Textile Directory15 Research was not carried out with government-owned paper mills16 Oji Paper company, http://asia.nikkei.com/Business/Companies/Oji-Holdings-building-new-plants-in-Vietnam-Myanmar17 Pulp, Paper and Packaging Industry of Myanmar



16

Paper for cardboard boxes in Myanmar is either purchased

locally or imported, depending on the quality requirements.

The vast majority of paper is imported (The Myanmar Pulp

and Paper Association estimates that 97% is imported) from

Thailand mostly and from other countries like Indonesia and

China. Cardboard producers can purchase locally from two

sources: they can either purchase from one of the six existing

paper mills in Myanmar, or from recycling plants that purchase

scrap paper form informal collectors and resell it to them. In-

terviewees reported that the local paper quality of production

is not deemed high enough for producing international export

quality packaging.

The cost of locally produced, virgin paper is ~USD 410 / metric

ton, while the cost of locally produced recycled paper is ~USD

370 / metric ton. Interviews indicated that the cost of imported

paper from Thailand can vary, but it’s on average ~USD 40 /

metric ton higher than the cost of locally sourced paper.

Paper is purchased in the form of rolls of kraft paper. These

rolls differ in quality and width of the paper, and are placed

on rolls to stretch it and dry it. A part of it will be shaped into

sheets of straight paper that will form the outer layer of the box

(higher quality, thicker imported paper), while another part will

be corrugated. Corrugation is the process in which the paper

is run through a machine featuring heavy rolls blowing steam

that will shape the paper into a continuous S-shape. These

corrugated sheets will be used for the internal layers of the

boxes. Figure 14 illustrates the main types of cardboard that

can be produced, differing by number of layers and carrying

capability: Single Faced Board, Single Wall Board, Double Wall

Board and Triple Wall Board.

These are then cut into sheets that are finally glued together

into cardboard box fitting the requirements of the client.

Local cardboard producers, as well as the Myanmar Pulp and

Paper association agreed on the major needs of the local

paper industry as:

The ability of the garment sector to source locally is an import-

ant step in their move from CMP to FOB. Buyers allow man-

ufacturers freedom in sourcing inputs in controlled phases,

starting from less critical inputs such as boxes. If cardboard

producers were able to source locally produced, higher quality

paper, they would be able to reduce lead times and they would

make sure that manufacturers (garment and others) would be

able to rely completely on them. The estimated cost savings

from increasing the percentage of locally produced boxes

up to 100% is estimated to be USD 5 Million / year, across all

sectors purchasing boxes18.

Main Types of Cardboard ProducedFIGURE 14

Input SuppliesThe quality of locally produced paper is not

high enough, and the industry is continuously

forced to import from abroad.

MachineryThe level of machinery currently utilized by

most of the industry does not allow for higher

quality production. Local manufacturers can

only produce cardboard sheets that are up to

140 grams/square meter, while the garment

industry would need double that capacity.

Workforce SkillsThe initial process of working the pulp/paper

onto the rolls to obtain thick paper sheets

requires an able workforce.

ElectricityAs an intensive machinery industry, the

production of cardboard boxes is heavily

afflicted by the electricity shortages in

the country.

18 Pulp, Paper and Packaging Industry of Myanmar



17

Improving the quality of paper recycled in the country does

not seem to be a strategically interesting option for an ILO in-

tervention, for different reasons. First of all, it would not de-

crease the need of the sub-sector for imported paper, which

is the main growth constraint. Collection and recycling are

carried out by informal workers in low working conditions;

while these jobs represent an interesting potential target for

job improvement, the current timeframe and resources make it

unlikely that a successful intervention might be implemented.

However, it would be suitable for future research and project

design to investigate and address the needs of these workers..

Polybags The main input needed to produce polybags is granulate, with

the addition of a small number of other chemicals. There are

~60 plastic product manufacturers in Myanmar. From con-

versations in the sector, it is estimated that ~20 of them are

producing polybags of different types (garment, food, others).

Factories involved in plastic products like polybags are not

labour intensive, as they employ on average ~20 to 30 opera-

tional staff. Local producers of polybags have two options for

input supplies: to import virgin granulate from abroad or to

purchase locally recycled granulate, which does not meet the

requirements of international brands.

The polybags production process can be broken down into

four main phases:

MATERIAL BLENDING: The granulate resin is mixed in a blend-

ing machine with additives.

EXTRUDING: The hot molten mix is then blown with a hot air

stream into a film that is then run through large pressure rolls

to give it a flat bag shape. Simple transparent packing bags are

produced this way, while more complicated ones are subject

to additional production printing steps. The majority of poly-

bags used in the garment sector are these simple bags.

PRINTING: Some polybags are then printed on with the desired

logo or message.

FINISHING: The last phase includes three steps, cutting,

sealing and folding.

The necessary virgin inputs are imported into Myanmar from

Thailand and China, as the country does not have a developed

petrochemical industry. The sector is characterized by a high

level of skills necessary to operate the machinery, and polybag

factories are not labour intensive but instead are machine in-

tensive. A few workers can run the main machinery at full ca-

pacity, while the only labour intensive activities are packaging

of the production, and transporting the inputs to the machin-

ery.

In terms of sourcing the inputs, the local factories indicated

that given the constraints on sourcing granulate, from abroad,

they have started recycling plastic to obtain an additional

source of granulate. However, the quality of recycled granu-

late in Myanmar is extremely low due to poor practices such

as use of multiple types of plastics and to lack of the right ma-

chinery to clean and process the plastics. The way it is recycled

does not allow them to produce transparent, fully recyclable

polybags, which are required by international garment clients.

For this reason, polybags produced from recycled plastics are

only used in the domestic market, while the ones produced

from internationally sourced virgin materials are used for ex-

ported products. However, international petrochemical com-

panies have recently confirmed their commitment to launch

operations into the country. The French multinational Imerys,

operating in industrial minerals, is currently considering entry

in Myanmar, and it would represent the beginning of a petro-

Polybag Production ProcessFIGURE 15

1

Material Blending

4

Finishing

2

Extruding

3

Printing

Packaging Sector Simplified Supply Chain: PolybagsFIGURE 16

Packaging Materials Importers

Granulate Importers & Foreign Producers

ExportMarket

Myanmar Packaging Manufacturers

Garment Manufacturers

Local Granulate Recyclers

DomesticMarket



18

chemical industry in the country. In a recent update, the

Myanmar Investment Commission (MIC) stated that in January

2015, twenty licenses were approved for foreign and JV enter-

prises were assigned to operate in different sector, including a

few producers that will focus on the production of bags and

polybags. However, the numbers and details of these enter-

prises are not public at the moment.

The main need of the sub-sector revolves around the ability

to easily, quickly and cheaply source granulate. The entry of

international plastic producers might have the positive effect

of reducing the cost of granulate to plastic manufacturers,

as well as improving their ease and speed of sourcing the

inputs. These would translate into cost and time savings for

the garment sector. However, this would not translate into a

substantial job creation as the production of polybags is not

labour intensive. Investing in improving the quality of produc-

tion of polybags utilized in the local market does not necessar-

ily seem a strategically interesting option for the ILO to include

in its interventions, as the main issue is the sourcing of quality

granulate.

Hangers

Interviews with two international garment buyers indicated

that they would be very interested in the possibility of local

manufacturers being able to source hangers locally. Shipping

hangers to a producer working on a CMP system is expensive,

as it entails a large waste of space when shipped in containers.

Almost ~90% of the garment production of Myanmar is

shipped folded in boxes, while only up to ~10% is shipped

hanged. While it would be beneficial to the sector to have a

local production of hangers, as shipping them from abroad

constitutes a large waste of container space, the substantial

capital requirements needed seem to pose a strong limitation

to the current growth potential of the sector.

However, hanger production for the garment sector is a ma-

chinery intensive and expensive process. While the production

of plastic hangers used in retail shops and for domestic pur-

poses is a rather simple process, consisting of one operator

working a heat press that molds the plastic into a fixed shape,

producing metal and plastic hangers that fit to the specifica-

tions of international garment clients is much more compli-

cated.

The market research identified that there is only one produc-

er (Proven Technology Industry) in the country who currently

has the capacity to produce hangers for the garment sector.

Proven Technology Industry is a large producer of automotive

batteries established in 1996. In 2011, they started production

of hangers in partnership with MHL Industries, a large regional

producer of hangers. The key advantage of this partnership is

the fact that each garment client has specific requirements re-

garding the shape, size, and weight of the hangers they need:

each type of hanger required needs a specific mould, which can

be used only to produce that specific type of hanger. Through

the partnership, Proven Technology Industry has access to the

large stock of molds owned by MHL, which reduces the need

for large capital investments. All the inputs necessary to hanger

production, which are mainly granulate and metal are 100%

imported from abroad, as the Myanmar does not have a devel-

oped petrochemical industry.

Plastic Suppliers

Simplified Hanger Supply ChainFIGURE 17

Buyers Supplying Hangers

PROVEN TECHNOLOGY INDUSTRY

International Hanger

Manufacturer

Other Local Hanger

Manufacturers

Retail MarketGarment Manufacturers

19 EMC Interview with MGMA and discussions with producers during workshops


Training Services

19

Training ServicesThe interview process indicated that the Myanmar garment

sector and its input suppliers show a lack of skills that en-

compass both technical production and managerial practic-

es. During the research process, workshop participants were

presented with the topic of trainings, and they confirmed the

finding that while the availability of a large and cheap work-

force is a strength of the garment sector, this is still largely

untrained and in need of productivity, efficiency, managerial

and other types of trainings, that are currently available in the

country only to a certain extent.

Technical Trainings

The technical training needs can be mainly divided into train-

ings directed at workers, at supervisors and at managers.

WORKERS’ TRAININGS relate to trainings directed at opera-

tors in garment factories. These include trainings to expand

workers’ skills in sewing, quality control and finishing. Specific

examples of these trainings modules include:

• Fabric Use Improved methods of handling cutting plans

to increase utilization of fabric to increase efficiency

and reduce costs connected to wastes.

• Quality Control Targeted at specific workers who

check produce items for defects and errors, to improve

factory’s efficiencies and reduce wastes.

• Model Verification Systems of cooperation between

management deciding production of a new model, su-

pervisors designing how the line production system is

going to function, and workers who will have to carry

out production.

• Work-in-progress Procedures for handling each

bundle, choice of ancillary equipment for internal

transport. Ensuring ease of passage of the bundles from

one operator to the next.

• Waste Reduction Improved uses of fabric and produc-

tion items House-Keeping: Improved procedures for

housekeeping, vacuum cleaning, and waste handling.

SUPERVISOR TRAININGS This type of training aims to give su-

pervisors a higher understanding of production techniques, as

well as implementing productivity and efficiency systems and

avoiding passive or authoritarian styles of leadership. In terms

of content, these trainings include:

Production Line Design

• Preparing and designing product and technical verifica-

tion sheets including measurements, type of fabric and

other inputs.

• Supervisors need to be able to design individual work

stations to simplify working procedures as much as

possible. This should encompass work done directly at

the single station (i.e. cutting or sewing) as well as work

around the station (i.e. delivery of inputs, transport of

worked items to the next station).

• Estimating and reducing waste from production, which

in the garment sector mostly stems from waste of fabric

due to improper fabric cutting?

• Understanding of how to best optimize the production

line and process of each type of garment, by studying of

the best layout and workflow for each product.

Monitoring

• Workers’ performance in terms of time worked, number

of pieces produced, number of pieces with defects,

delays, etc.

• Monitoring quality controls to verify which types of gar-

ments and which steps of the production lines produce


Training Services

20

the highest number of mistakes, and how to fix the

most recurring ones.

• Ability of supervisors to use these monitoring systems

not only as a way to punish inefficient production, but

to reward the best operators with salary increase rec-

ommendations as well as promotions.

Machinery

• How to regularly monitor machinery, and how to keep

well organized tracking of when a machine last re-

ceived maintenance or when in the future it should be

checked.

MANAGEMENT TECHNICAL TRAININGS revolve around the

ability to obtain the highest amount of information from fac-

tory’s supervisors and to apply it to management decision

regarding production. Direct examples of related training

modules are”

Organizational

• Ability to design the organizational chart of the factory

with the clearest job descriptions as possible, to avoid

misunderstandings between different workers’ groups.

• Ability to design a system of salaries, benefits and in-

centives that is clear throughout the factory, so that

workers are as informed as possible of their potential

for promotion and salary increases.

Production Planning

• Ability to work hand in hand with factory supervisors to

ensure that the actual factory’s capacity and available

labour are taken into account when contracting deliv-

ery quantities and dates, as well as sourcing the neces-

sary production inputs.

Machinery

• Ability to work with supervisors to monitor the condi-

tion of the available machinery, to be able to plan for

costs of maintenance, replacement for better machin-

ery

• Technical knowledge of the availability, cost and po-

tential benefits of new and improved machinery, from

increased production capacity, to energy savings and

environmental impact.

Available ProvidersIn this still early stage of the re-birth of the sector, the avail-

ability of the enabling service provider, while needed, is still

somewhat limited. This is due both to the decreased growth

experienced by the country during the economic sanction

times, as well as to lack of willingness to invest in trainings

by garment producers. The current CMP system of produc-

tion dominating the market, with its focus on cost rather than

high quality, has not created a solid system of incentives for

manufacturers to invest in trainings as a way to improve quality

and efficiency. The following paragraphs give an overview of

the main providers of technical trainings available within the

Myanmar garment sector.

The MGMA, with funding and equipment provided by JICA,

runs a training school for the garment sector. The school is

located in a building belonging to the Ministry of Commerce,

and is set up with 120 working stations where garment man-

ufacturers can send their workers to be trained. The facility is

called the Myanmar Garment Human Resources Development

Center (MGHRDC), and offers two courses, free of charge:

a 10 day basic sewing training and a 10 day supervisor train-

ing course. From research founding, the institution does not

appear to be running at full capacity. Due to the lack of full

time trainers, who are usually provided for by the Japanese

International Cooperation Agency (JICA), the courses appear

to run only 3 to 4 times per year.

The SMEs for Environmental Accountability, Responsibility and

Transparency Project (SMART) was founded by the European

Union starting in 2013 and with time frame currently spanning

until 2015. The program offers tailored improvement pro-

grams within the 15 factories they currently operate in, and

the modules span for CSR trainings, quality trainings, produc-

tivity trainings, health and safety trainings, working conditions.

Modules are run both at factory level and in classroom en-

vironments. The program is additionally partnered with the

German Textile Federation and the Dutch organization CBI

(a subsidiary of the Dutch Ministry of Economic Affairs) who

deliver additional training in the field of export promotion, and

also include participating factories in trips to Europe to partic-

ipate in trade fairs and meet potential buyers.

Impactt limited provides a range of trainings tailored to

garment factories that include training for board directors,

commercial teams, auditor training, CSR trainings, supplier

management trainings as well as site management. Impactt

is active in China, Bangladesh, India, Thailand and Turkey and

is currently entering Myanmar. To do so, they have recently


Training Services

21

partnered with Hamsa Hub to deliver trainings to the facto-

ries within the program they run with the Business Innovation

Facility (BIF). At the moment, Impactt is working with two fac-

tories, they have 8 more confirmed to join in 2015 and plan to

reach a total of 16.

The interview process has indicated that international buyers

offer trainings to the garment factories that they develop

longer business relationships with, to improve their capaci-

ty, quality and efficiency. The contents of these trainings are

usually focused on technical assistance, tailored to the specific

need of the receiving factory. Buyers provide these trainings

either by sending one of their internal technicians or buy con-

tracting international experts and send them to the selected

factories. A good example of this type of training is Marks &

Spencer, who are known to send technical experts to their

supplying factories to improve their production lines, efficien-

cy and quality levels.

Finally, a training method that has been recorded in the country,

albeit rarely, is for garment factories to directly engage and hire

international expert consultants to travel to Myanmar and train

their staff. This has happened rarely, as garment producers still

lack either the willingness or the necessary funding to pay for

this expense, whose cost varies between USD 1,500 and USD

2,000 / month, plus travel allowances. It has also been indicat-

ed that a few garment factories have hired such experts not just

as trainers, but as full time managerial positions, to improve the

activities of the factory over a longer period of time. However,

it was indicated that language and cultural barriers arose from

using foreign managers.

Summary of Technical Training Providers

Training Provider Funded By Training Offer Limitations

MGMA JICA • Sewing Training

• Supervisor Training

Only being run 3/4

times, due to lack of

foreign expert trainers,

usually provided by JICA

SMART EU • CSR trainings

• Productiviy Trainings

• Quality Trainings

Time limited (2 year

program).

Currently limited

number of factories

Impactt Paid for by factories,

in cooperation with

BIF and HamsaHub

• Board directors &

• commercial teams

trainings

• Auditor training

• CSR trainings

• Supplier management

trainings

• Site management

Currently limited

number of factories

International Buyers’ Trainings

International buyers • Quality trainings

• Productivity Trainings

• Efficiency Trainings

Based on the existance

of a lasting or growing

relationship between

international brands and

garment producers

International Experts Local garment factories • Productivity Trainings

• Management Trainings

Expensive

Limited willigness to pay

from garments

FIGURE 18


Training Services

22

Managerial Skills Trainings

Additionally to technical trainings, the garment sector of

Myanmar also appears to lack a set of managerial skills that

would increase its potential to grow from the current CMP

production system toward an FOB one. While this move is very

much in line with national strategies and the sector’s inter-

est, managerial skills will be needed to be able to manage a

more complex system, that will see local managers be respon-

sible for sourcing inputs independently, account for a more

complex system of expenses in their budgets, as well as in-

creasing the level of social compliance to mirror the needs of

international brands. The training modules that would cover

the current managerial needs of the Myanmar garment sector

can be summed up as:

• Supply Chain & Sourcing The ability to locate the best

suppliers, coordinate the delivery of different inputs

supply reducing lead times, as well as managing ship-

ping times and separate contracts.

• Cash Flow Management Monitoring, analyzing and ad-

justing the companies’ cash flow, to avoid cash short-

ages hindering growth.

• Accounting and Book Keeping Keeping formal track

of all expenses and revenue, as well as purchase order,

sales order, Inventory, payroll, bank reconciliations, and

bill of materials.

• Business Planning Clearly defining the enterprise’s po-

tential to grow, strategy, objectives, as well as capital

and physical requirements to achieve that.

• Marketing and Sales to International Buyers Ability to

put together compelling marketing and sales tools for

garment manufacturers to reach out to international

buyers with presentations and catalogues highlighting

product and labour capabilities of the factory.

• Occupational Safety and Health Building on the

already existing Better Work modules, the ILO might in-

troduce a training directed at improving the knowledge

of managers and supervisors of temperature, ventila-

tion, chemical hazards, fire and electrical safety.

• Preventing and Addressing Sexual Harassment Build-

ing on the already existing Better Work modules, the

ILO might introduce information and trainings to middle

and senior management on how to identify harassment,

how to conduct interviews and impartial investigations

respecting confidentiality issues.

From high level research of these second type of training pro-

viders, two institutions figured as the most reputable within the

country:

• Myanmar Human Resource Institute Active in Yangon,

Mandalay and Bago, it offers management courses, as

well human resources to both public and private sector

clients.

• Strategy First Institute Strategy First Institute is a

for-profit, world-class learning center of business man-

agement, specializing in corporate strategy, entrepre-

neurship, and marketing.


Recommendations

23

a set of interventions that the ILO might develop and implement in the short term (within three to six months)

Deepen Sector Linkages

with buyer led workshops, trade fairs,

and strengthening linkages to banks

Information Sharing

with business directories and

white papers

a set of interventions that would take longer to design, and that ILO might develop, launch and complete within the span of one year

Skill Development

Technical Skills

Management Skills

A set of interventions to consider for advocating and promoting the law and regulation country policies

Working Toward

National Strategy Goals

Safety and working conditions

Industy production standards

Steering committee for strategic poli-

cies

Near Term Year-Long Policy

RecommendationsThe following section will walk through the potential interventions that might be considered by the ILO, broken down into three categories:


Recommendations

24

Near Term InterventionsThe study highlights potential for interventions to be launched and implemented in the short term. The first set of near-term suggested interventions revolves around deepening the sector linkages between value chain actors, while the second one revolves around improving the level of available information and knowledge resources in the sector.

Deepen Sector Linkages Between Value Chain Actors

Buyer-Led Workshops The relationship between international brands and local

garment manufacturers is lacking in strength and depth, and

EMC recommends the ILO design and facilitate a series of

workshops to improve these linkages.

ACTORS These workshops should be led either by an inter-

national consultant or workshop organizing firm (the person

or firm engaged would need to manage relationships with

foreign brands). The key presentation at workshops would be

done international brands or by regional agents sourcing for

these brands. Participants to these events should be primarily

garment manufacturers as well as willing and interested input

suppliers (both local and international). These workshops

should be large enough to ensure a networking function, and

small enough to guarantee that the events will remain par-

ticipatory in nature, with good interaction between buyers

and garment manufacturers. The suggested size for each of

these events would be for around twenty to thirty companies

per event.

CONTENTS Each presenter should present their company

overview, requirements for garment production including

technical specifications, required product lines, as well as

one additional specific topic for each presenter. Some topics

could include: quality management, volume management,

workflow improvements, the strengths and weaknesses of the

Myanmar garment sector, access to trade finance, managing

labour issues, or a case study of working with a new produc-

tion partner through collaboration.

TIMELINE EMC recommends that these events take less than

half a day to avoid participation fatigue and are organized

quarterly or bi-annually, to both avoid over committing in-

vitees, and since engaging all stakeholders in a fruitful event

with enough participants takes significant planning time and

resources.

PARTNERS AND IMPLEMENTERS The ILO could involve in-

ternational brands that have either already interested in

the market or that have representatives in nearby countries

(Vietnam, Cambodia); brands with interest in the market and

with a strong CSR commitment along their supply chain like

CHALLENGE WEAK VALUE CHAIN LINKAGES

Strengthen linkages between international brands and garment manufacturers

ACTIVITY Workshops led by buyer or regional agent

BENEFICIARIES Garment manufacturers and international brands

BUSINESS MODELS

The ILO could initially sponsor the organization of workshops

conducted by representatives of either international brands or

of regional agents procuring on behalf of international brands.

These could become a business activity or marketing activity for

the organizer in the future. On these occasions, the buyers could

come and present to suppliers their needs and interest in the

market.

One crucial point of each of these workshops would be for

buyers to present what they need from producers (perhaps

to help them move towards produce as FOB), increasing the

knowledge of the sector.

Additionally, it would allow for networking between buyers and

suppliers.


Recommendations

25

TESCO, H&M, Marks & Spencer, and GAP are ideal partners.

Additionally, this could be an opportunity to cooperate with

JICA or JETRO to engage a Japanese brand. The MGMA

would represent a good partnership in involving locally op-

erating garment sector producers. The main objective would

be to ensure that the invited manufacturers could potentially

be good partners with the buyer presenting the workshop, in

terms of production items and capacity. The ILO might consid-

er using the services of a consulting company or a workshop

company like “Myanmar Promotional Services”, specialized in

organizing business events, such as large workshops and trade

fairs.

Small Scale Garment Trade Fairs for Input SuppliersGiven the currently nascent and weak linkages between

garment producers and input suppliers, it would be beneficial

to the sector if the ILO could facilitate the growth of these re-

lationships. Local producers might also be interested in enter-

ing joint ventures with foreign producers who have the tech-

nical knowledge and the capital necessary to improve their

production, and it would be beneficial for the sector to allow

for the development of the relationship between foreign and

local producers.

During the research, input suppliers often were not available

for a meeting, potentially indicating they don’t see large busi-

ness potential in the garment sector. It might be therefore more

challenging to involve these actors in this type of event. EMC

therefore recommends organizing a small trade fair, focused

on building linkages with a few inputs suppliers (both locally

based and internationally based) necessary to the garment

sector. This would allow the ILO to gauge interest from the

input suppliers for future involvement. If the first event is suc-

cessful, this model could be replicated in the future, or com-

bined with larger trade fairs already in existence.

ACTORS Targets of these events should not be limited to local

input producers, but to the wider net of input suppliers that

could service the garment industry. This would include local

producers, local importers of foreign inputs, as well as interna-

tional distributors and producers, willing to service and enter

the Myanmar market. The other group of actors would be the

local garment manufacturers, both foreign and locally owned.

TIMELINE EMC recommends that the ILO could organize two

of these events in a one-year time frame, coordinated with

the buyer workshops described above to ensure attendance

fatigue is considered.

PARTNERS AND IMPLEMENTERS The MGMA is a natural po-

tential partnership in reaching out to garment manufacturers

to ensure their participation in the fairs. The Myanmar Textile

Directory (mentioned below) would represent a good link to

reach out to input suppliers active in the country, however

individual invitations would need to be made in order to get

attendance from a number of input suppliers. Utilizing the ser-

vices of a consulting company or event organizing company

would again be beneficial in this instance. It could be beneficial

to partner with the UMFCCI and the MGMA to reach out to

garment input suppliers as well, on top of garment manufac-

turers.


Strengthen linkages between garment manufacturers and input suppliers

ACTIVITY Mini-Trade fairs

BENEFICIARIES Garment manufacturers and input suppliers

BUSINESS MODELS

Given the currently low strength of the linkages between

garment manufacturers and input suppliers, organizing

trade fairs specifically targeted at the wider net of input

suppliers to the garment sector would allow a first step

towards the strengthening of the linkage.

The ILO could organize these fairs, involving:

• Garment Manufacturers

• Input Suppliers

• Input Producers

• Local producers

• International and regional producers

• Input dealers and importers

This larger net would allow for the growth of the linkage

without restricting it to the still nascent input supply sector

in the country.


Recommendations

26

Linkages with the Banking SystemSector interviews to both garment and input manufactur-

ers have indicated that access to growth and working capital

poses an important limitation in their growth. Banks are cur-

rently lending in the sector, but loan terms are not attractive

for long-term investments or working capital management

(e.g. loan terms of twelve months). The ILO could act as a

facilitator in creating awareness between banks, government

ministries and garment manufacturers.

Building bank awareness

While growing rapidly, the garment sector might yet not be

seen as interesting by local banks, or alternatively local banks

might not have enough information for their credit depart-

ments to accurately assess the financial risk. Developing a

presentation showing the key facts (such as estimated NPLs),

growth and potential of the sector, and key financial growth

needs (investment lending and trade lending) would be a start-

ing point in raising the awareness of lending institutions.

Strengthening linkages between banks and the

garment sector

If the results of direct meetings with the management of local

banks were to be fruitful, the next step would be to try to

create a connection between manufacturers and the banks.

This could be done by organizing a participatory workshop

where 1-2 garment manufacturers can present and discuss

their capital needs and 3-5 banks could also present to man-

ufacturers their requirements in terms of lending application,

business planning, accounting practices and collateral. This

type of activity has been proven successful in other emerging

markets.

PARTNERS: PUBLIC SECTOR On the public sector side, the

ILO might consider partnering with:

IFC – through its Trade Finance Program in cooperation

with CB bank) and is at the same time providing credit

lines to Yoma Bank and Myanmar Oriental Bank to support

lending to SMEs.

IMF – is working with CBM on pushing financial sector

reforms as well as collecting and providing reliable sector

statistics.

UNCDF – is working on a roadmap to address the con-

straints to financial inclusion and promoting private sector

growth.

GIZ – is working on a Technical Assistance program

devoted to supporting three banks in Myanmar.

PARTNERS: PRIVATE SECTOR On the private sector side, the

ILO should try to include:

The largest non-state-owned banks – Kanbawza Bank,

Co-operative Bank, Myawaddy Bank, Myanmar Apex Bank,

Ayeyarwady Bank, Asia Green Development Bank, United

Amara Bank, Yoma Bank and SMIDB.

Foreign banks who were already granted licenses to

operate in Myanmar – Mitsubishi UFJ Financial Group,

Sumitomo Mitsui Financial Group and Mizuho Financial

Group (Japan), UOB and OCBC (Singapore), ICBC (China),

Bangkok Bank (Thailand), Maybank (Malaysia) and ANZ

(Australian/New Zealand).


Strengthen linkages between garment manufacturers and banks

ACTIVITY Facilitating meetings or workshops

BENEFICIARIES Garment manufacturers and banks

BUSINESS MODELS

BUILDING BANK AWARENESS: While growing fast, the

garment sector might yet not be seen as interesting

by local banks. Developing a presentation showing the

key facts, growth and potential of the sector would

be a starting point in raising the awareness of lending

institutions.

CREATING LINKAGE BETWEEN BANKS AND THE

GARMENT SECTOR: If the results of direct meetings with

the management of local banks were to be fruitful,

the next step would be to try to create a connection

between manufacturers and the banks. This could be

done by organizing a participatory workshop where

garment manufacturers would discuss their capital

needs and banks would present to manufacturers their

requirements in terms of business planning, accounting

practices and collateral.


Recommendations

27

Information Sharing

There is a lack of available information and knowledge re-

sources in the sector, at all levels of the chain. This report will

be a valuable addition to the sector analysis; however, inter-

national brands and buyers have indicated they would need

better access to market specific information (manufacturers,

production volume, quality metrics, workforce information,

regulatory framework), and the research showed that access

to suppliers is limited.

Business DirectoryTo support the ease of access of different actors to other

market actors’ information, the ILO might sponsor the creation

of a business directory. This would consist of lists of:

• Local garment manufacturers, their workforce, produc-

tion lines, ownership and direct contact information.

• Input suppliers, importers, distributors as well as man-

ufacturers, including production items, capacity and

direct contact.

• Service providers to the sector: legal firms, freight for-

warders, JV consulting agencies, training organizations,

regional buyer agents, and banks.

The directory to be developed shouldn’t just list size and

names of businesses (which has been done by Pyoe Pin in col-

laboration with the MGMA), but provide an easily accessible

tool for the selection of business partners. A model to be taken

into consideration for the ILO might be the business directory

produced in various countries by business chambers. This di-

rectory is available online, as well as published yearly and sold

in for a fee (i.e. the American Chamber of Commerce charges

~30 USD for their directory in Thailand).

The ILO might subsidize the development of the first edition in

coordination with the MGMA or UMFCCI, and test its reception

in the market place. If the uptake of the directory is satisfacto-

ry, the next editions could be sold for a full fee.

CHALLENGE ACCESS TO INFORMATION AND KNOWLEDGE RESOURCE INTERVENTIONS

ACTIVITY Business Directory

BENEFICIARIES Garment manufacturers, input suppliers,

international brands and service providers

BUSINESS MODELS

The sector would benefit for a series of business

directories made easily available to the sector

stakeholders.

• List of local garment manufacturers, their

workforce, production lines, ownership and

direct contact information

• List of input suppliers as well as manufacturers,

including production items, capacity and direct

contact.

• List of service providers to the sector: legal

firms, freight forwarders, JV consulting agencies,

training organizations, regional buyer agents, and

banks.

ACTIVITY White Papers to be presented at industry events

BENEFICIARIES Garment manufacturers, input suppliers,

international brands and service providers

BUSINESS MODELS

Sector stakeholders have indicated lack of knowledge

and transparency on key features of the market. The

ILO could sponsor the creating of a series of freely

downloadable white papers on a list of topics, interesting

to a number of stakeholders.

Access to information about operations, finance, active companies.


Recommendations

28

PARTNERS AND IMPLEMENTERS The MGMA website would

be an efficient distribution point to disseminate these lists,

which could be also shared on the ILO Myanmar website, as

well shared with other development stakeholders and asso-

ciations. The existence of this directory could be presented

and sold at sector events to make sure that stakeholders are

informed. These directories might be developed internally by

ILO staff, or external consulting firms such as Thura Swiss, and

Hamsa as well as individual consultants might be contracted.

White PapersTo aid the dissemination of business and technical key infor-

mation in the sector, the ILO might sponsor and lead the de-

velopment of a series of research-based white papers on spe-

cific issues. The topics to be covered should include topics of

interest to a variety of stakeholders:

Garment Manufacturers:

• Case study on successful garment sector growth in

similar countries

• FOB requirements, opportunities and challenges

• Overview of the banking sector requirements for the

garment sector (including banking letters of Credit

system, locally and internationally

• Cross-border trade practices

• Joint Ventures legal requirements, opportunities and

challenges

Government:

• Overview of the garment sector, and key challenges to

growth (taxes, banking, etc.)

For banks:

• Overview of the garment sector, and key challenges to

accessing finance

PARTNERS AND IMPLEMENTERS similarly to the business di-

rectories, these papers could be presented at industry events,

as well as shared for free on the ILO website, and the MGMA

one. Also similarly, the ILO could choose to develop them in-

ternally or contract external parties like Thura Swiss, Hamsa

and Emerging Markets Consulting

Example of a Business DirectoryFIGURE 19


Recommendations

29

Year-Long InterventionsThe research identified a number of critical constraints in the sector, but suggests that the ILO is well positioned to contribute to contribute to skill development.

Skills Development

Technical Production SkillsInterviews have indicated that both garment and input man-

ufacturers have gaps in their production skills that can be ad-

dressed through the provision of trainings.

For the garment sector specifically, the training needs can be

mainly divided into different areas:

WORKERS’ TRAININGS: trainings directed at operators in

garment factories. These include trainings to expand workers’

skills in sewing, quality control and finishing. The MGMA and

SMART offer trainings in these areas. Additionally, international

brands working with manufacturers send technical experts to

train the workers (Marks & Spencer and other brands are cur-

rently doing this), if they see the potential in developing the

business relationship with them.

SUPERVISOR AND MANAGEMENT TRAININGS: this type of

trainings aims to give supervisors a higher understanding of

leadership techniques, as well as implementing productivity

and efficiency systems and avoiding passive or authoritarian

styles of leadership. The MGMA is currently offering a ten day

supervisory training to the industry.

These types of trainings are already being provided in the in-

dustry, although we believe the volume of trainings could po-

tentially be increased. Additionally, it has been found that once

international brands develop a solid business relationship with

a supplier, they will provide the factory with their own techni-

cal trainings.

However, EMC would recommend the ILO not to enter in a

service area that is already being covered by other provid-

ers. While the sector’s need for technical training is not fully

covered, there are issues with the demand. Manufacturer in-

terviews have not indicated the existence of a sustainable will-

ingness to pay to train their factory workers. While they are re-

ceiving free trainings from providers and international buyers,

it does not seem likely that the will be willing to sustain the risk

of training their workers, given the high turnover rate charac-

terizing the sector.

Also garment input suppliers have technical skill gaps that need

to be addressed. Cardboard producers mostly need technical

trainings in the areas of Paper and Pulp processing to increase

production quality and paper recycling practices and efficien-

cy practices to diminish the production waste (given their high

reliance on imported input supply). Polybag producers would

benefit from granulate recycling trainings and production ef-

ficiency practices trainings. However, targeting both of these

groups specifically would require the procurement of very

specific and well trained personnel from abroad to come into

the country and train these actors. Given the nascent phase

of the industry, and the low number of workers required to

work the machinery operated in these two input supplies, EMC

would not recommend developing new trainings for these

sub-sectors. Additionally, while there are technical skill gaps

among input suppliers, the main need of those sectors to grow

is linked to the ability to source locally produced, cheap and

quality inputs (namely paper and granulate); even if technical

efficiency can be improved at this stage, intervening in this area

will not drastically contribute to the growth of the sub sectors.


Recommendations

30

Management SkillsFor the garment sector to be able to evolve from the current

production systems towards FOB, EMC suggests that the man-

agement of the factories will need to improve a set of skills that

allows them to plan and prepare for growth, specifically in the

following areas:

• SUPPLY CHAIN & SOURCING: the ability to locate

the best suppliers, coordinate the delivery of different

inputs supply reducing lead times, as well as managing

shipping times and separate contracts.

• CASH FLOW MANAGEMENT: monitoring, analyzing

and adjusting the companies’ cash flow, to avoid cash

shortages hindering growth.

• ACCOUNTING AND BOOK KEEPING: keeping formal

track of all expenses and revenue, as well as purchase

order, sales order, Inventory, payroll, bank reconcilia-

tions, and bill of materials.

• BUSINESS PLANNING: clearly defining the enterprise’s

potential to grow, strategy, objectives, as well as capital

and physical requirements to achieve that.

• MARKETING AND SALES TO INTERNATIONAL BUYERS:

ability to put together compelling marketing and sales

tools for garment manufacturers to reach out to inter-

national buyers with presentations and catalogues high-

lighting product and labour capabilities of the factory.

• OCCUPATIONAL SAFETY AND HEALTH: building on

the already existing Better Work modules, the ILO might

introduce a training directed at improving the knowl-

edge of managers and supervisors of temperature, ven-

tilation, chemical hazards, fire and electrical safety.

• PREVENTING AND ADDRESSING SEXUAL HARASS-

MENT: building on the already existing Better Work

modules, the ILO might introduce information and

trainings to middle and senior management on how to

identify harassment, how to conduct interviews and im-

partial investigations respecting confidentiality issues.

EMC would recommend the ILO to focus on these types of

training modules, by developing the capacity of existing train-

ing providers. The ILO might launch an open bidding process,

where the service providers would prove their capacity and

sector knowledge. After selecting the best candidate, the ILO

should help them develop the training modules defined, by

providing them with technical knowledge either from their in-

ternal staff, or by sourcing an expert to carry this development.

Once the modules are designed, the service provider would

be in charge of marketing the modules and finding attendees,

while the ILO could subsidize the training fees for compa-

nies either active in the garment sector, or connected to it.

The ILO could set its training goal for the year at subsidizing

the offering of 5 training modules to enterprises active in the

garment sector, with 10 participants / module. Once these 5

modules are completed, the service provider will be responsi-

ble to continue offering the module to the sector, marketing

it and finding client, who will now have to pay full fees for it.

The uptake of trainings in the first (subsidized) phase, and in

the follow up (paid) phase, will represent a direct indication of

the success of the intervention. EMC would recommend that

when scouting for the right service provider to partner with,

the ILO should pay special attention to the following, consid-

ered the most reputable institutions in management trainings

in Myanmar:

• MYANMAR HUMAN RESOURCE INSTITUTE: active in

Yangon, Mandalay and Bago, it offers management

courses, as well human resources to both public and

private sector clients.

• STRATEGY FIRST INSTITUTE: Strategy First Institute is a

for-profit, world-class learning center of business man-

agement, specializing in corporate strategy, entrepre-

neurship, and marketing.

EMC recognizes that when dealing with management train-

ings to group of managers from different factories, there might

be limitations to the amount of information and knowledge

shared in the classrooms, as these enterprises are competing

among each other. In the longer run, and depending on the

uptake of the trainings, the ILO might consider sponsoring the

development of a one on one advisory consulting service. In

this service, business experts would advice and guide factory

managers in their strategic choices and on how to improve

their systems and operations.

20 EMC recognizes that this might constitute for the ILO a pre-amble to testing market demand for the ILO’s Better Work program


Recommendations

31

CHALLENGE MANUFACTURERS / SUPPLIERS’ CAPACITY

ACTIVITY Supply Chain & Sourcing Trainings

Cash Flow Management Trainings

Accounting Trainings

Business Planning Trainings

BENEFICIARIES Garment Manufacturers, Input Suppliers

and service providers

BUSINESS MODELS

The ILO could:

1. Identify a local or international service provider offering

management trainings to Small and Medium Enterprises,

whether they currently offer these trainings or not.

2. Get a technical expert to design the desired training

modules.

3. Support the training provider. ILO can provide a specialist

trainer, and/or finance the first few rounds of trainings, to

jump start the uptake of the modules.

4. After the initial round of subsidized trainings, the aim

of the program should be for SMEs to pay for the service,

ensuring sustainability. The uptake of training after the free

round is completed will act as an indicator of impact.

Management Capabilities of Input Suppliers and Manufacturers

ACTIVITY Trainings for cardboard producers

• Paper and pulp processing

• Paper recycling

• Efficiency Trainings

Trainings for polybags producers

• Granulate recycling

BENEFICIARIES Input Suppliers

BUSINESS MODELS

While EMC would not recommend pursuing this line of

trainings, the ILO might provide a technical experts to train

willing input suppliers among input producers:

• Pann Thazin Tissue Factory

• Myanmar Yes

• Grand Harvest Enterprises

• Diamond Island

• Tun Tauk Plastic

• Japan Carton Box (JCB)

• Pack Express

• Maple mentioned a

Chinese name

The Myanmar Pulp and Paper Industry Association, with its

24 members, would be a great partner in further selecting

the training needs of their members, as well as promoting

the program among them. The Myanmar Plastic Industry

Association would be a potential partner as well, when

targeting manufacturers of hangers and polybags.

Technical Capabilities of Input Suppliers

ACTIVITY Operators’ Trainings

Productivity Trainings

Supervisory Skills Trainings

Quality Control Trainings

BENEFICIARIES Garment Manufacturers

BUSINESS MODELS

These trainings are already available in Myanmar.

Additionally, with increasing buyer/manufacturers

relationships, international brands will provide more

technical trainings to the factories they choose and trust?

Technical Capabilities of Garment Manufacturers


Recommendations

32

Policy Related RecommendationsAdvocacy and Policy Guidance

The last area of intervention that EMC would suggest the ILO

to undertake is in the area of policy. While the country has

embarked on a series of liberalization reforms, and while the

garment sector has shown promising both actual and poten-

tial growth, there are still vast legal and regulatory gaps that

hinder the development of the sector. As it falls into one of its

core mission components, the ILO is in a unique position to

aid, support and incentivize policy development in a number

of different areas. To provide ILO with recommendations on

which policy areas to focus on, an overview of the National

Export Strategy for the Textile and Garment Sector developed

by the Ministry of Commerce has been carried out. The areas

of intervention that would most benefit the Myanmar garment

sector according to this study have been identified and sub-

sequently evaluated based on two criteria: Pertinence to ILO’s

mission and capacity, and the feasibility of producing relevant

impact in a twelve month framework (full review of objectives

in annex).

Among the objectives and sub-objectives included in the na-

tional strategy, EMC believes the following to be the most rele-

vant to the garment sector’s growth, as well as within the ILO’s

mission and with the potential to be successfully launched and

results achieved within the next twelve months:

OBJECTIVE (4.3.1): MoLESS is looking for Technical assis-

tance to develop a clear set of guidelines to limit human

exposure to harmful working conditions. Other parties to

be included in this effort would be INGOs, NGOs, Ministry

of Information, UMFCCI, MGMA, MoI, MoC, MoH.

OBJECTIVE (2.3.1): The MGMA is looking for Technical

Assistance to support to develop the official Myanmar

set of production standards for the garment sector and

to develop them across the sector. The other bodies to

include in this effort would be the Myanmar Scientific and

Technological Research Department, MoI, MoC, Ministry

of Information, the Myanmar Engineering Society, MoLESS

and UMFCCI.

OBJECTIVE (1.1.3): The Ministry of Commerce is looking

for Technical Assistance to develop a high-level steering

committee to coordinate the efforts of a group of minis-

tries to design the future strategic policies to support the

growth of the garment and textile sector. The other partic-

ipating bodies included in the strategies are: MNPED, MoI,

Ministry of Agriculture and Irrigation, Customs, UMFCCI

and MGMA.

Potential Impact in 12 months

Alignment with ILO’s Mission and Capacity

Steering Committee to design the strategic policies for the garment sector

Working with MGMA to create a system of production standards for the garment sector

Technical assistance to create guidelines and framework of better working conditions

Ranking of the potential policy interventions

FIGURE 20


Recommendations

33

The matrix depicted in Figure 16 represents EMC’s perception

of the three identified policy options in terms of their relevance

to the ILO’s mission, as well as their potential impact in the

next twelve months.

EMC would recommend the ILO to focus its activities on

working towards the creation of better jobs by expanding the

contents of objective 4.3.1 and by acting on two levels.

On the first level, the ILO could build upon the objective stated

in the national strategy, and act as a technical advisor to create

a clear set of guidelines regulating not only safe working con-

ditions, but also total amount of working hours, contract en-

forcement, and the payment of over time. In this capacity, the

ILO could engage the targets identified by the national strat-

egy. Similarly to how the ILO has developed the eight cluster

of indicators for the Better Work, the ILO might split these

guidelines into two groups: labour laws to be developed to

international standards, and labour laws to be conformed to

the local law.

Additionally, the ILO could take a role as a focal point to

engage two other sets of stakeholders. On the one hand, the

ILO can work with the MGMA to gather inputs on labour law

and working conditions from garment manufacturers and

their workers. This could be done by introducing the proposed

guidelines during development phase to factory owners and

factory workers separately to get their specific feedback.

Alternatively, the ILO can work with individual international

buyers and/or groups of international buyers. The first goal

would be for the ILO to have a very clear idea of what each

buyer’s supply chain compliance needs are (safety, working

hours, etc.) and make sure that they get transmitted to the rest

of the industry. The second goal, and more long term, would

be to start the process to try and work with international buyers

to try to develop and agree upon a single common framework

of compliance to be requested to garment manufacturers.

If the ILO were to focus on objective 2.3.1, to support the

MGMA in creating a system of production standards, the ILO

would have to work on two levels. On the first hand, the ILO

would have to provide technical support in the form of an in-

ternational garment expert. This expert would have to carry out

an assessment of the technical production ability of garment

manufacturers and on how to set up the internal operations

within the MGMA to become a certifying body. On the other

level, the ILO could work as a focal point to include interna-

tional buyers into the discussion on design of the production

standards, to ensure that these are aligned with international

quality requirements. The key advantage for the ILO in working

towards this goal would be that it would allow it to ensure that

the standards to be set would not only cover technical product

details, but also include assurance mechanisms that factories

follow a set guideline of proper working conditions within their

factories.

If the ILO might finally choose to work with the Ministry of

Commerce and other bodies towards reaching objective 1.1.3

to create a steering committee uniting a variety of stakehold-

ers in the design of strategic policies to promote the garment

sector. If that were the case, EMC would recommend that

the ILO might take a leading role in coordinating the works

of such a committee, to make sure it does not operate in a

vacuum. The ILO, in a position as an organizing focal point,

would be in position to include feedback and inputs from

parties outside of the ministry bodies directly involved. First of

all, the ILO should coordinate with international buyers to have

a clear view of what they perceive as the strategic needs of

the garment sector, and report these inputs to the committee.

On the other side, the ILO would be in a strategic position to

include workers’ needs and working conditions in the strategic

planning of policies for the sector.


Annex

34

AnnexReview of National Strategy Objectives

OBJECTIVE

Secure public policies that will enable transformation of the Myanmar textile and garment sector from the CMP mode of manufacturing to the FOB mode.

1.1 Adopt policy measures to support textile and garment sector evolution from CMP to FOB.

1.1.1 Extend the same duty exemptions enjoyed by importers of CMP inputs to importers of FOB inputs,

an advantage typically enjoyed by Myanmar’s competitors and critical to making the CMP-to-FOB

transition profitable.

Notes: Unclear tax and regulatory implications

WITHIN ILO’S MISSION AND CAPACITY RELEVANT IMPACT WITHIN 12 MONTHS

1.1.2 Adopt an SEZ law and articulate implementing regulations which provide for the ownership, development

and management of fully serviced SEZs by public, private, or public–private parties. This should promote

synergetic clusters and optimize the cost of providing the sector with the infrastructure it needs to succeed.


1.1.3 Form a high-level policy steering body (e.g. interministerial committee or ministry) dedicated to the

coordinated formulation and implementation of strategic policies and initiatives for the promotion of the

textile and garment sector.


1.1.4 Provide tax exemptions for capital investments and duty exemptions for imports of capital goods, to

encourage ramping up the sector’s productive capacity with modern equipment.


1.1.5 Encourage greater use of modern machinery by having the Government guarantee long-term credit

arrangements between Myanmar buyers and foreign suppliers.


1.2 Promulgate and enforce labour regulations that improve the skills and competitiveness of the sector’s labour force.

1.2.1 Articulate regulations for the trained worker retention clause of the Employment and Skill Development Law

and enforce them, so that employers and workers may engage in meaningful contracts by which employees

receive advanced training from firms in exchange for commitments to stay with those firms for an agreed

period, thereby incentivizing employer investment in Myanmar labour.

Notes: Contract enforcement mechanisms design and implementation seems unfeasible within the timeframe


1


Annex

35

1.2.2 Extend the standard length of work permits for foreign technicians and professionals from three months to

one year, with the possibility of renewal, so that Myanmar firms can predictably fill critical skill gaps while

domestic skills and worker retention policies are being improved.


1.3 Establish the financial policies and regulatory framework that will allow the sector to finance factory start-up, operations and trade.

1.3.1 Issue MoFR instructions permitting the export of goods without proof of advance payment or letter of

credit, as currently required, so that Myanmar may engage in trade according to international norms and be

a more attractive sourcing destination.


1.3.2 Issue CBM instructions on conducting back-to-back letters of credit and other forms of trade finance, giving

financial institutions the regulatory clarity they need to proceed.

Notes: Some banks have been licensed since 2011 but are awaiting guidelines.


1.3.3 Issue CBM instructions permitting the use of certain movable assets as collateral and increasing the

percentage of the collateral’s value which can be lent, allowing garment manufacturers to borrow much

more than currently possible.


1.3.4 Establish Government guarantees and subsidies to support long-term credit for firms in the sector, allowing

garment manufacturers to borrow much more than currently possible.


OBJECTIVE

Substantially increase production and exports of textiles and apparel according to international quality standards.

2.1 Increase the number of garment factories from 300 now to 800 by 2015.

2.1.1 Under the aegis of the high-level policy steering body, establish a working group to reduce the number and

processing time of official procedures for garment factory start-up ( e.g. registration, so that start-up time is

reduced from four or five months to one month).


2.1.2 Stimulate creation of sector-supporting businesses, such as plant set-up consulting firms and design

houses, through investment promotion and by offering these businesses the same preferential treatment

given to textile and garment firms.

Notes: EMC is recommending a similar activity by improving the increasing the offer of management trainings

in the industry


2


Annex

36

2.2 Infuse the sector with large amounts of capital, technology, skills and international business networks not available domestically.

2.2.1 Articulate clear and objective eligibility requirements for MIC approval of wholly foreign-owned garment

factories and apply them predictably and transparently.


2.2.2 Make the garment sector an investment promotion priority for DICA, providing it with an additional staff

member with sector experience, and the funds to subscribe to a commercial database of investors.


2.2.3 Encourage greater use of modern machinery by having the Government guarantee long-term credit

arrangements between Myanmar buyers and foreign suppliers.


2.2.4 According to current skill demands, implement a vocational programme for machine operation and

maintenance, production management, industrial engineering, fashion design, and computer-assisted

design operations.

Notes: EMC does not recommend the ILO move into the space of technical trainings for garment

factory workers.


2.3 Establish clear quality standards for the sector and help firms meet them reliably.

2.3.1 Have MGMA establish national quality standards for garments and disseminate those standards to members

through circulars and seminars, and online.


2.3.2 Have the Myanmar Scientific and Technological Research Department act as a testing and certifying body

for garment quality and build its capacity to do so.


2.3.3 Have MoI help the sector achieve widespread international quality certification (BSCI, SGS, WRAP, ISO etc.)

through awareness-raising campaigns and monthly trainings in Yangon for quality assurance personnel

of garment factories. This will help the sector adopt appropriate quality control mechanisms both for the

import of inputs (for FOB manufacturing) and for the export of garments that are globally recognized as

meeting basic quality standards.

Notes: ILO’s mandate would be limited to labour law compliance.



Annex

37

2.4 Empower exporters with quality information on foreign markets.

2.4.1 Facilitate garment sector companies’ participation in international exhibitions in target markets through

assessing the availability of exhibitions in the garment sector, seeking invitations, and securing visas and

participation booths.

Notes: EMC recommended carrying this out through trade fairs and buyer workshops.


2.4.2 Organize trade missions to target markets, presenting well-developed export products with well-prepared

fact sheets, new designs, new packages and samples.

Notes: EMC does not suggest carrying this out as the amount of garment manufacturers impacted would be

quite low.


2.5 Foster an internationally competitive and socially sustainable workforce through the building of skills and a strong work culture.

2.5.1 Using public funding or public–private partnerships, establish worker training, testing and certification

centres for the booming garment labour force at sector clusters and SEZs as a cost-effective way of

upgrading productive capacities and growing the labour pool where it is needed.


2.5.2 Have the ministries responsible for industry and labour collaborate with industry associations and civil

society to create a public education campaign for television and radio that will educate the public on the

work culture that will allow Myanmar to be globally competitive while upholding worker rights.


2.5.3 Have the ministries responsible for industry and labour collaborate with industry associations and civil

society to conduct workshops and seminars at factories about employer–employee relations, as a way to

reduce worker turnover while building the pool of worker skills and wages within each factory.

Notes: EMC recommends these topics to be covered during workshops organized to engages foreign buyers.


2.6 Enable cotton farmers and textile producers to participate in and profit from the garment sector’s growth.

2.6.1 Have MoI, as the line ministry of the State-owned textile factories, reach out to all public and private textile

factories to enlist founding members of a Myanmar Textile Manufacturers Association, with representatives

in each state and division, so as to better coordinate the sector’s strategic linking to the garment sector,

capacity-building and policy advocacy.

Notes: Intervention limited to textile factories.


2.6.2 Fund seed distribution and extension services by the Cotton and Sericulture Department’s seven research

farms, so they can disseminate high-quality seeds and best-practice knowledge to cotton plantations with

low-quality seeds and low yields.



Annex

38

OBJECTIVE

Greatly improve efficiency and reduce costs of the sector through the public provision of critical infrastructure in sector-dedicated zones and port facilities.

3.1 Provide cluster growth poles through fully serviced SEZs dedicated to garment factories and supporting industries.

3.1.1 Commission a feasibility study to review potential SEZ sites and make recommendations on location, size,

infrastructure, rates, ownership and management structures, services, impacts, risks, etc.


3.1.2 Elaborate legal and regulatory frameworks for SEZs in line with international best practices, as a prerequisite

for attracting private investment in the construction, management and ownership of SEZs.

Notes: ILO’s mandate would be limited to a labour law in SEZs.


3.1.3 Recognizing the importance of the garment sector as Myanmar’s only major manufacturing industry, set

aside 4,000 acres of public land for the establishment of two to three garment-centric SEZs.


3.1.4 Designate the SEZs as export processing zones to allow duty-free import of garment inputs (whether

for CMP or FOB manufacturing) when the final product is due to be exported, thereby giving garment

manufacturers one of the basic tools for international competition.


3.1.5 Assuming private ownership and/or management of the SEZs, make the tendering process competitive and

open it to a wide range of international companies, so as to attract a highly experienced company that will

charge tenants competitive rates.


3.1.6 Provide the zone with critical infrastructure, including dedicated electricity, a wastewater treatment plant,

roads, telecommunications and facilities for a training centre.


3.2 Ensure adequate electricity supply to existing industrial zones where garment factories are located.

3.2.1 Cancel the plan to end public electricity supply to industrial zones and to require manufacturers to generate

their own electricity. This poses a major technical and financial hurdle to garment firms, undermining their

competitiveness and dissuading investors from starting the many new factories so badly needed.


3.2.2 Prioritize existing clusters of garment firms in national power grid development plans, for example, by

providing them with dedicated electricity substations.


3


Annex

39

3.2.3 As a matter of public policy, have State-owned power companies provide factories with internationally

competitive industrial tariffs.


3.3 Increase container yard space and reduce the cost of getting Myanmar garments out of the country.

3.3.1 Reduce public lease charges to private container yards .


3.3.2 Increase amount of public land used for container yards, allowing more companies to operate, increasing

competition and reducing costs.


3.3.3 Mandate / incentivize / obtain the use of modern port management systems through sector regulations,

incentives and terms of concession.


OBJECTIVE

Achieve widespread adoption of worker protections and environmentally friendly technologies and practices.

4.1 Link all textile and garment factories to wastewater effluence systems, so as to preserve Myanmar’s vital water resources.

4.1.1 Have MoECF officials, water authorities and staff of relevant assembly members receive training from

specialized INGOs and NGOs on best-practice laws, regulations and monitoring systems for water

conservation.


4.1.2 Elaborate clear implementing guidelines for regulations on wastewater and penalties for failure to comply.


4.1.3 Conduct a campaign among garment factory owners and managers to raise awareness about the negative

effects of water pollution, best practices for wastewater management, regulations they must comply with,

and penalties for failure to comply.


4.1.4 Conduct seminars and workshops for the owners and managers of all garment factories to train them on

best practices for wastewater management and procedures for complying with regulations. ( With only a

couple of hundred factories and nearly all of them based around Yangon, representatives of all factories

could conceivably be trained in 10 workshops or fewer. ) .


4


Annex

40

4.2 Encourage adoption of low-emission and energy-conserving machinery and equipment, so as to start Myanmar’s industrialization in a sustainable way.

4.2.1 Conduct a campaign among garment factory owners and managers to raise awareness about the long-term

commercial benefits of adopting various ‘green’ technologies, both because of cost savings and because of

branding value.


4.2.2 Conduct seminars and workshops with factory owners and managers to train them on best practices for

conserving energy and maintaining low emissions. (With only a couple of hundred factories and nearly all

of them based around Yangon, representatives of all factories could conceivably be trained in 10 workshops

or less.)


4.3 Ensure workers are provided with adequate ventilation and protective equipment.

4.3.1 Elaborate clear implementing guidelines for regulations limiting human exposure to harmful working

conditions and penalties for failure to comply.


4.3.2 Conduct a public awareness-raising campaign about the dangers of industrial work and the obligations

of employers and employees to maintain a safe workplace for the good of individuals and national

development

Notes: EMC recommends that ILO should first investigate in depth what are the key areas of danger in

industrial garment work.


4.3.3 Conduct seminars and workshops with factory owners, managers and workers to train them on best

practices for ensuring workplace safety in the garment sector. (With only a couple of hundred factories and

nearly all of them based around Yangon, representatives of all factories could conceivably be trained in 10

workshops or fewer.)

Notes: Recommended



Annex

41

Abbreviations

CMP Cut, Make and Package production system

CSR Corporate Social Responsibility

DANIDA Danish International Development Agency

DICA Directorate of Investment and

Company Registration

EMC Emerging Markets Consulting

EU European Union

FDI Foreign Direct Investment

FOB Freight On Board

GSP Generalized Scheme of Preference

ILO International Labour Organization

INGOs International non-governmental organization

JETRO Japan External Trade Organziation

JICA Japan International Cooperation Agency

JV Joint Venture

LC Letter of Credit

LLCs Limited Liability Company

M4P Making Markets Work for the Poor

MFTB Myanmar Foreign Bank

MGMA Myanmar Garment Manufacturers Association

MIC Myanmar Investment Committee

MICB Myanmar Investment and Commercial Bank

MoC Ministry of Commerce

MoH Ministry of Health

MoLESS Ministry of Labour, Employment and

Social Security

NGOs Non-governmental organizations

NPLs Non Performing Loans

OBM Original Brand Manufacturer

ODM Original Design Manufacturer

OEM Original Equipment Manufacturer

SEZs Special Economic Zones

SMART SMEs for Environmental Accountability,

Responsibility and Transparency project

SMEs Small and Medium Enterprises

SWOT Strengths, Weaknesses, Opportunities, Threats

UMFCCI Union of Myanmar Federation of Chambers of

Commerce and Industry

USD United States of American Dollar

WFOES Wholly Foreign Owned Enterprises


Annex

42

Stakeholders Contacted

Garment

Mr. Tin Win AungNEW EVER BEST

TRADING CO, LTD.

Technical Director

knits & printing

[email protected]

9595008642

No. 8, Building 5

Hnin Si Str.

MTNT Township

Yangon

Did not accept

Mr. Yin Yin HtaySUCCESS CREATOR

COMPANY LTD

workwear producer

cherrygarment@gmail.

com

9598617142

282/283 Corner of Mingyi

Min Gaung & U Tayoke

Gyi Str.

Shwe Lin Ban Ind. Zone

Hlaing Thar Yar TSP

Yangon

Visited

Mrs. Aye Aye HanSHWEYI ZABE GARMENT

MFG CO, LTD.

Director

producer of light ladies

wear, knit & woven

shweyizabe.mm@gmail.

com

9595008066

Shwe Pyi Thar

Industrial Zone - 3

Yangon 11411

Visited

Mrs. Khine Khine Nwe (Rosaline)BEST INDUSTRIAL

COMPANY LTD.

Director

producer of trousers,

jackets, woven and

knitwear

rosaline429@gmail

951610510, 9595013329

107 (A)/42 Industrial

Estate 1

Shwe Pyi Thar Township

Yangon

Did not accept

Mr. Yoo JinTOP HTAY COMPANY

LTD.

Director

washing facility &

embroidery

[email protected]

95973150732,

9595167293

No. 21, Yangon Industrial

Zone,

Mingalardon Carden City

Mingalardon Township

Yangon

Did not accept

Mrs. Conny SudhoffSEIN SANDAR

Director

producer of ladies

blouses and men shirts

[email protected].

mm

951685167

No. 104, Seik Kan Tha Tha

Str., Ext. Of Hlaingthaya

Ind. Zone, Hlaingthaya

Township, Yangon

Did not accept

Mr. Myint SoeCHINDWIN BANNER

CO. LTD.

Owner

producer of trousers &

knits

Did not accept

Mr. Paul KJ LeemE-LAND MYANMAR MFG

Director

producer of jackets &

trousers

leem_kyoungju@eland.

co.kr

95973189685

2nd. FAC. No. 84, Than

Chat Wun Nyunt St. Ind.

Zone II, Shwe Pyi Thar

Township Yangon

No. 107/108, Mya Marlar

Road, Tharkayta Industrial

Zone.

Did not accept

Mr. Hine Sein SHWE MINGALAR

CO., LTD.

Director

producer of jackets &

trousers

shwemingalar007@gmail.

com

951639229

No 25/26, Mingalardon

Garden City, Yangon

Industrial Zone, Yangon

Did not accept

Mr. Yin Aung LwinKYARLAY APPAREL

CO., LTD.

Director

producer of outerwear

jackets

[email protected]

951) 685900, 687941,

687942

o.164,166,167, Sayasan

Street, Industrial Zone 2,

Hlaing Tharyar Township,

Yangon

Did not accept

Win Ei KhineMAPLE

Director

[email protected]

09 420016997

6A-6B, Ingyin Street, Nyar

Na Ward, Pale Myo Thit,

Mingalardon

Visited

Dr. Min Gaung OoMYN SYNERGY

Managing Director

rickymin@synergy-

garment.com

09 45004600

Did not accept

Winsom AbelGREAT WORLD WIDE

Executive Secretary

[email protected]

09 73050237

99, Koe Lone Kwin,

Yangon-Pyay Road,

Mhaw Bi.

Visited

Tun TunPRINCESS POWER

Managing Director

[email protected]

09 5172532

42, 1st Floor, Bo Aung

Kyaw Road, Lower Block,

Interviewed

Baynar AungATELIER GARMENT

Director

[email protected]

01 695572

Did not accept

Zin May Lin ATELIER GARMENT

[email protected]

01 695572

Did not accept

Shwe Zin OoSHWESAGAR

HR/ADM

shwezinoo316@gmail.

com

09 254004702

Did not accept

Aye ThandarSHWESAGAR

HR/ADM

[email protected]

09 425286779

Did not accept

Pyae PyaeSANDAR HEIN

sandarhein2012@gmail.

com

09 31285617

Did not accept


Annex

43

Ohnmar WinSANDAR HEIN

Director

[email protected]

9595016806, 09

73023250

Did not accept

Khin Mar SeinCHIN DWIN BANNER

Director

umyintsoe.chindwin@

gamil.com

09 5043990

Did not accept

Moh Moh Lwin GOLDEN JASMINE

Director

goldenjasminemm@

gmail.com

09 5057984

103, Mingyi Mahar Min

Kaung Road, Shwe

Thanlynn Industrial Zone

Visited

Sai Maung RISING WHITE TIGER

MFG CO LTD.,

Managing Director

[email protected]

09 5199434

No. 160, Min Gyi Mahar

MinGaung Street, Shwe

Lin Pan Industrial Zone,

Hlaing Thar Yar

Visited

Htay Htay Aye THIRI SANDAR

Managing Director

htayhtayaye333@gmail.

com

09 5148761

Aung San Ward, Lower

Mingalardon Road

Visited

Ye SeinSHWE MINGALAR

Managing Director

shwemingalar007@gmail.

com

09 5167525

Did not accept

Zaw Lin LattKPH GARMENT

Managing Director

aungsigarment@gmail.

com

09 43191877

Did not accept

Thin Thin SweHTIKE HTIKE

Supervisor

09 421183844

Did not accept

Lin Tay ZarHANG KEI

HR Manager

[email protected];

kenhuang22@yahoo.

com.hk

09 421044224

Did not accept

Shwe Thiri KhitHAMSAHUB

Director

shwe.thirikhit@hamsahub.

com

09 420018773

Did not accept

Tin Nilar Win TRI SEA

Admin

tinnilarwin386@gmail.

com

09 250118342

Did not accept

Nu Htwe Naing TRI SEA

Admin

nuhtwenaing27@gamil.

com

09 250821052

Did not accept

Naing OoA1

HR Manager

already FOB

09 421017753

Did not accept

Ra Ju SMC GARMENT

Managing Director

[email protected]

09 73111697

Did not accept

Mya Mya Thin929 GARMENT

Managing Director

[email protected]

09 73225088

Did not accept

Khin Mya AyeDIAMOND ROSE

Managing Director

[email protected]

09 5010050

141 Waizayandar Road

North Okkalapa

Industrial Zone

Visited

Wai Thu HtunASIA ROSE

Factory Manager

[email protected].

com

09 33758526

Did not accept

Khin Myint Yi Kyaw SHWE HNIN SIE

Managing Director

shwehninsei

manufacturing36@gmail.

com

09 5170139

Did not accept

Khin Moe LwinGRAND SPORT

INT’L CO., LTD

Managing Director

khinmlwin.dolly@gmail.

com

09 5096611

Did not accept

Min Thwin OoGREAT LUCKY STAR

Manager

managermto.glsgloves@

gmail.com

09 421091377

Did not accept

Zin Zin AyeGREAT LUCKY STAR

Admin/HR

zinzin.glsgloves@gmail.

com

09 421091377

Did not accept

Li ShizhangDONGLONG (MYANMAR)

GARMENT

General Manager

producers of coats, pants

donglongli1973@gmail.

com

09-73219008

No. 106, Min Gyi Mahar

Min Gaung Street, Shwe

Than Lwin Industrial

Zone, Haling Thar Yar

Visited

Ma San San HtwayGRAND SPORT

01-610249, 09-5013687,

09-5138422

Did not accept

Daw Thwal Thwal SoeNEW GREEN LAND

[email protected]

09-421104437

Did not accept

Kyaw Min HtetGOLDEN TROGON

Managing Director

producers of pants,

t-shirts, polo shirts

shwezarmani

[email protected]

09-254026732

No. 663, Meizegone

Street, 7 Ward, Hlaing

Visited

Ma Win Pa Pa AungMOON CRAB

01-685151

Did not accept

U Phyu WinTRI SEA

[email protected]

01-651360

Did not accept

Mr. Joe Young, Mr.Ken Huang, Lin Tay ZarHANG KEI

[email protected],

kenhuang22@yahoo.

com.hk

09-254114026, 09-

421044224

Did not accept


Annex

44

Ms. Yin Yin MoeKAUNG AUNT GARMENT

Managing Director

[email protected]

09-5003714

No. 74/B, ThuKha St, 8

Mile, Mayangone

Did not accept

U Kyaw Tun HeinBEST MAKER

bestmaker@myanmar.

com.mm

9450053704

Did not accept

Ms. Thet Htar SweHALLMARK

Chairman

producers of coats, pants,

skirts, all kinds of clothes

thet-h-swe@hallmark-

manufacturing.com

09-5098923

No. 52/A, Mya Taung

Wun Gyi U Hmo St,

Hlaingtharyar Industrial

Zone (1)

Visited

Ms. San San HtayUMH

General Manager

producers of pants,

t-shirts, polo shirts

[email protected]

09-5417853

No. 538/A, Block (28), No.

(4) Highway Road, Shwe

Pyi Thar T/S, Yangon

Visited

U Tin ZawESCORT GARMENT

Admin Manager

producers of Escort local

brand

escortfactory88@gmail.

com

09-73126899

No. 8, Yannaing Swe (2)

Street, Thaketa Industrial

Zone, Thaketa

Visited

Packaging

Mr. Han Zaw LynnPANN THAZIN TISSUE

FACTORY

Owner

producer of carton boxes,

tissue

hanzawlynn12@gmail.

com

09-5198602

No. 1/88, Kanaung

Minthar Gyi Street, East

Dagon Industrial Zone

Visited

Mr. Maung Maung AungMYANMAR YES

Manager

producer of carton boxes

09-43197520

No. 75, Phan Chet Wun

U Shew Oh St, Industrial

Zone (3), Hlaing Tharyar

Visited

Mr. Kyaw Swar HtetGRAND HARVEST

ENTERPRISES

Project Manager

producer of carton boxes

09-4210231611

No. 172, Mingyi Maha

Min Gaung Street, Shwe

Lin Pan Industrial Zone,

Hlaing Tharyar

Did not accept

Mr. Kyaw MinMYANMAR PULP AND

PAPER INDUSTRY

ASSOCIATION

Vice President

producer of paper

[email protected]

09-541790

No. 35(D), Thayawaddy

Street, Sayar San Qtrs,

Bahan

Visited

Mr. Aung Khaing OoMYANMAR PULP AND

PAPER INDUSTRY

ASSOCIATION

Executive Committee

producer of paper

pekyawhtin94@gmail.

com

09-5104982



Bahan

Visited

Mr. Kyaw Zaw AungMYANMAR PULP AND

PAPER INDUSTRY

ASSOCIATION

Executive Committee

producer of paper

kyawzawaung08@gmail.

com

09-5175224



Bahan

Visited

Ms. Thandar WinDIAMOND ISLAND

Managing Director

producer of poly bags

[email protected]

09-5153408

No. 19/327, Matkhayar

Min Thar Gyi Road, Shwe

Pauk Kan Industrial Zone,

North Okkalapa

Visited

Mr. Tun WinTUN TAUK PLASTIC

Managing Director

producer of plastic

electricrm2010@gmail.

com

09-5121915

No. 139, Ground Floor, 15

Street, Lanmadaw

Visited

Japan Carton BoxVisited, but didn’t get

any information as they

refused to share the

information

Pack ExpressVisited but didn’t get

any information as they

refused to share the

information

Visited

Hangers

Mr. Than Htaik LwinPROVEN TECHNOLOGY

INDUSTRY

Chief Operating Officer

producer of hangers

alanlwin@

toyobatterymyanmar.com

09-5019086

No. F/S-14, Bayintnaung

Road, Shwe Sabai Yeik

Mon, Kamayut

Visited


Annex

45

Acknowledgements

The consultants wish to acknowledge the input of multiple

stakeholders who contributed to this study and provided in-

formation and guidance. This list includes the whole Synergia

team, the Responsible Business team of the ILO, the Myanmar

Garment Sector Association, Pyoe Pin, garment manufactur-

ers, packaging and hanger producers.

myanmar garment sub-sector value chain analysis garment sub...myanmar garment sub-sector value chain...

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